Income tax allocation for regional mayors is ‘big leap forward for growth’ in Nottinghamshire and Derbyshire

Scott Knowles (Credit: East Midlands Chamber)

‘A big leap forward for growth and for progressing the devolution asks we’ve been calling for’ – East Midlands Chamber’s reaction to a major Government policy change for some revenue from income tax and business rates to be allocated to regional mayors.

The changes are expected to begin from Spring 2027 with more detail to be revealed in this year’s Autumn Budget. Under the plan, mayors will get some of the revenues taken from income tax and business rates to be used to invest locally.

Delivering devolution at pace is one of the key asks in East Midlands Chamber’s landmark publication – The Framework for Growth – released at the end of 2025.

Among asks, the document urges policymakers to prioritise long-term funding settlements for the region so business support, skills and infrastructure investment can be tailored to local needs.

East Midlands Chamber Chief Executive Scott Knowles said: “Funding and local investment decisions are best controlled locally – when you know the region first-hand, you know its growth needs, you know where spending is going to be best placed to have the greatest benefit. Skills needs differ from place to place, as do infrastructure and business support needs, so aligning with the specific priority areas your region has will better benefit business and the communities in which they operate.

“For considerable time, we have been calling for powers to be devolved to regions at a much greater level – delivered at pace – so this policy change is something I very much welcome – a big leap forward for growth, and for progressing the devolution asks we’ve been calling for. 

“By placing some of the revenue from income tax and business rates in the control of the Mayor of the East Midlands, projects can be prioritised that are good for business and good for communities across Nottinghamshire and Derbyshire.

“As we go forward, I look forward to working with the Mayor and political leaders, as we look at the detail of the plans as they emerge – what level of revenue will be allocated, how will it work exactly – placing front and centre the needs of the business community we represent.”