Government weighs safeguards as new regional spending powers are planned

The government plans to hand additional income-tax revenue to England’s regional mayors, prompting ministers to explore ways to curb potential misuse of the new spending powers. Options on the table range from creating a new Westminster select committee and tightening reporting requirements to establishing a specialised audit agency for local and regional authorities. Some suggestions even entertain a recall process for mayors who exceed budgets, mirroring existing rules for MPs.

Treasury select committee chair Meg Hillier argued that robust oversight is essential, and the Institute for Fiscal Studies highlighted the risk that wealthier areas could pull ahead without equalisation payments. The upcoming white paper on “rewiring the state” will detail these reforms, which are central to the devolution agenda championed by figures such as Andy Burnham.