Budget expected to make devolution a thread with mayors in line for tax powers
The Budget is expected to spread devolution through more mayors, with business rates shares, a tourist tax and possible business help through national insurance thresholds.
How it was covered
- Sky News was the only channel found covering it.
- Channel 5, BBC News, BBC One, BBC Two, Channel 4, GB News and ITV: not found in tracked broadcasts.
The Full Story
A plain summary built from the channels that reported this story. Facts only one channel reported are attributed to it.
A pre-Budget briefing has set out expectations that the upcoming Budget will make devolution a running theme, with combined authority mayors in line for a share of business rates and possible new local tax powers. The plans stop short of full fiscal devolution. Whitehall is said to be cautious about handing over more power.
Mayors are expected to get confirmation that they will share in the increase in business rates. There is also a plan around keeping some income tax. The detail will matter, because areas with lower growth worry they could lose out. Manchester, which has grown strongly in recent years, could gain more than places that have not yet built the industries of the future.
The first step towards local tax raising is expected to be a tourist tax. This would allow mayors to levy a per-night charge on hotel rooms and other accommodation in their areas. Ben Houchen, the Tees Valley mayor, wants to convert some devolved tax money into tax-lowering powers. Whitehall has debated the idea and he is expected to be allowed to do so. The combined authority model covers 48% of the country, leaving questions about how devolution would work elsewhere.
On business taxes, the Treasury is said to want to do something for business. One option being watched is a change to national insurance thresholds. Supporters say it would be less expensive than cutting the headline rate. The cost was put at around 1 billion to 2 billion pounds, compared with 8 billion to 10 billion pounds for a headline rate cut. The measure could also help efforts to get young people back into work.
The political argument is live. A Conservative shadow minister said devolution should let local leaders cut taxes as well as raise them. She argued the government was interested in letting councils and mayors raise taxes but not lower them. She said that if mayors get the power to take more of people's money, they should also get the power to give it back. She said her first tax cut would be stamp duty, which she called a brake on the housing market.
Key Claims
Claims reported during this story's coverage, grouped by how many channels reported each one. Select a dot to see the source excerpt.
| Claim |  |
|---|---|
| Only on one channel | |
| Changes to the national insurance threshold are being considered as a cheaper business tax measure. | |
| Combined authority mayors are expected to receive part of the increase in business rates. | |
| Mayors could be allowed to impose a per-night tourist tax on hotel stays. | |
Channel Perspectives
What each channel focused on, with key quotes.
Sky News focused on the expected Budget detail rather than a single event: devolution as a theme, business rates for mayors, tourist tax, and possible national insurance threshold changes. Its tone was analytical and cautious about how much money and power are actually on offer. It also gave space to a Conservative argument that devolution should include tax-cutting powers and a push for stamp duty cuts.
- “We expect, as Andy Burnham said in an interview on Sunday, devolution to be a thread throughout the budget”
- “We will get confirmation that business rates, the share of the increase in business rates, will be shared with combined authority mayors”
- “if the Prime Minister is going to give mayors the power to take more of people's money, he should also give them the power to give it back.”
Who was on air
People and organisations each channel put on air while covering this story. Channels' own presenters and reporters are not listed. Names as transcribed, and the list can miss people.
- 09:20 GMT
Katie Lam, Shadow Secretary for Housing, Communities and Local Government
Mornings with Ridge and Frost · Tue 27 Oct
Broadcast Timeline
News broadcasts tracked for this story, in time order.