Story perspectives

Chancellor Unveils £2.3B Fund for Regional Growth

3/17/2026

Summary

Story summary

Chancellor of the Exchequer Rachel Reeves unveiled a plan to let regional leaders claim a share of tax revenues to spur growth outside London.
The broader plan will be outlined in the autumn budget.
Reeves announced a £2.3 billion City Investment Fund for mayors to invest in long-term projects in the North and Midlands.
Critics, including Shadow Chancellor Sir Mel Stride, accused her of deflecting blame for economic issues.

History

Historical Context

The Devolution of Powers Act 1998 established the Scottish Parliament and Welsh Assembly, redistributing authority from Westminster and allowing regional governments to manage local tax revenues. This shift aimed to enhance local governance and address economic disparities. Rachel Reeves' recent proposal to allocate tax revenues to regional leaders reflects this ongoing effort to foster investment in the North and Midlands, a challenge rooted in the devolution movement.

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Story summary

Chancellor of the Exchequer Rachel Reeves unveiled a plan to let regional leaders claim a share of tax revenues to spur growth outside London.
The broader plan will be outlined in the autumn budget.
Reeves announced a £2.3 billion City Investment Fund for mayors to invest in long-term projects in the North and Midlands.
Critics, including Shadow Chancellor Sir Mel Stride, accused her of deflecting blame for economic issues.

1 / 2