The Chancellor has committed to further devolution of fiscal powers to Scotland, Wales and Northern Ireland and widespread investment in infrastructure for the North and Midlands.
- greater tax and welfare devolution through the Scotland Bill;
- lowering tax burden on oil and gas industry, by introducing a new investment allowance and reducing the headline rates of tax;
- working towards the Welsh Government holding a referendum on devolution of income tax; and
- £2 billion additional spending powers for Northern Ireland, provided it fulfils commitments in the Stormont House Agreement, and devolution of corporation tax rate setting powers.
With a focus on the “Northern Powerhouse” and the Midlands, the government is allocating substantial funding for the development of transport links and infrastructure in these regions. There are also proposals for devolution deals more broadly for local areas. The measures are likely to attract more investment in these regions and demonstrate the government’s commitment to supporting economic growth outside London.