British finance minister Rachel Reeves has announced plans to grant England's regional mayors additional powers to stimulate economic growth and attract investment. Speaking on Tuesday
during a visit to Hull, a city in northern England, Reeves emphasized the importance of empowering local leaders to address regional economic disparities.
The economic struggles of regions outside London, coupled with the capital’s growing dominance, have become increasingly pressing issues for the UK. Since 2000, London’s share of the national economy has risen by over 3 percentage points to 24%, while other regions have seen no comparable growth, according to official statistics. In contrast, European countries like Germany and France show far less regional disparity, according to data from Eurostat.
At the Great Northern Conference, Reeves previewed a forthcoming policy paper on English devolution, set to be released later this month. The document will outline new strategic partnerships between city-region mayors and the Department for Business and Trade, aimed at driving innovation and economic development.
“We aim to support more local leaders by fostering partnerships with businesses and universities to unlock their regions’ innovation potential, ensuring everyone benefits from innovation-driven growth,” the finance ministry summarized in Reeves' remarks.
Reeves also announced plans for Britain’s innovation and research authorities to collaborate with regional mayors on strategies for boosting long-term investment in their areas.
This focus on regional empowerment aligns with the Labour government’s broader objective under Prime Minister Keir Starmer: creating "good jobs and productivity growth in every part of the country." Photo by Lauren Hurley / No 10 Downing Street, Wikimedia commons.