This piece examines how proposed oversight could accompany the transfer of additional spending powers from Westminster to England’s regional leaders.
More revenue, more scrutiny
Ministers are exploring ways to hold mayors and council chiefs in England to account if they receive additional revenue under Labour’s devolution plans. The government is due to publish a white paper on “rewiring the state” later this month, with detailed proposals to hand more income tax revenue to regional mayors. Rachel Reeves first suggested the approach in her Mais lecture earlier this year, and Andy Burnham’s government has adopted it as part of its growth policy. Officials are concerned about accountability between elections as well as at the ballot box. The source article describes safeguards under discussion, not evidence that any regional leader has misused the proposed powers.
Possible checks on local spending
The options being considered include a new select committee in Westminster, enhanced reporting rules and an audit body focused on local and regional government. Officials have also discussed whether spendthrift mayors could be recalled by voters, as rule-breaking MPs can be. Meg Hillier, chair of the Treasury select committee, said her committee could scrutinise the additional spending powers, arguing that clear lines of authority through departments and ministers would allow existing select committees to examine the work. The mechanism at stake is continuing public oversight: local leaders would gain greater control over revenue, while reporting, audit and parliamentary scrutiny could provide checks before the next election.
The audit gap and the funding balance
The Audit Commission, which had a specific role overseeing local government spending, was abolished in 2015 and its functions were divided between several other bodies. The discussions therefore cover both accountability and the design of a stable funding system. Government officials are weighing how to give local leaders incentives to support economic growth without allowing funding differences to widen unfairly. The Institute for Fiscal Studies has called for “equalisation payments” so that areas with the highest share of income tax, such as London, do not pull further ahead. Its devolution expert, David Phillips, said local leaders could be more empowered to support growth, but that careful design would be needed to prevent richer areas’ funding from unfairly pulling ahead.
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The proposals remain under consideration and the forthcoming white paper is expected to set out the government’s detailed approach. For public bodies and suppliers, the important issue is how any new regional spending authority is matched with clear responsibility, reliable reporting and scrutiny that can operate between elections. The discussion suggests that devolution may change not only who controls public money, but also which bodies review those decisions.
Reported from theguardian.com, 2026-10-04. The Tender Wire is published by Otnox.
