Responding to the Prime Minister’s plans to give mayoral authorities a greater share of locally generated business rates and income tax, Charlotte Horobin, Chief Executive of Cambridgeshire Chamber of Commerce, said:
“We welcome the principle of allowing more of the wealth generated within our region to be retained and invested locally.
“As an area already represented by a mayoral combined authority, Cambridgeshire is well placed to benefit from decisions being made closer to the businesses and communities they affect. Greater financial flexibility could support long-term investment in transport, skills, infrastructure, employment and regeneration, all of which are vital to raising productivity and supporting sustainable economic growth.
“However, businesses will need considerably more detail before the full implications of these proposals can be understood. We need clarity on how much revenue will be retained, how the new system will interact with existing government funding, how differences between regional tax bases will be addressed, and what safeguards will be introduced against fluctuations in local revenues.
“It will also be important to understand how funding decisions will be made and how mayoral authorities will be held accountable for delivering measurable economic outcomes.
“Fiscal devolution must not simply transfer financial risk from Whitehall to local areas. It should provide stable and predictable funding that enables authorities to plan with confidence and invest in the priorities that will make a tangible difference to businesses.
“Local employers must be involved from the outset. Their knowledge of the barriers to investment and growth should help shape how additional resources are used, rather than businesses being consulted only after spending priorities have been agreed.
“This announcement has the potential to be a positive development for Cambridgeshire. We stand ready to work with the mayoral combined authority and government to ensure that greater fiscal autonomy translates into stronger businesses, better jobs and lasting prosperity across the whole region.”