New Powers for Regional Mayors to Boost Economic Growth

MANCHESTER, England (Reuters) – Regional mayors across England will be granted new powers to enhance economic growth and attract investment, announced British finance minister Rachel Reeves during a visit to Hull.

The issue of poor economic performance outside of London and the capital's growing dominance is becoming increasingly problematic for Britain.

Reeves addressed the Great Northern Conference, stating that a forthcoming policy document on English devolution will propose new strategic partnerships between city regions led by mayors and the Department for Business and Trade.

The finance ministry's summary of Reeves' comments emphasized a desire to support local leaders working with businesses and universities to unlock regional innovation potential, ensuring widespread benefits from innovation-driven growth.

Additionally, Reeves mentioned that Britain's innovation and research authorities will collaborate with mayors to develop plans aimed at boosting long-term investments.

Official data indicates that London's portion of the national economy has risen over 3 percentage points since 2000, now comprising 24%, while no other region has seen a similar increase during this timeframe.

By comparison, data from the EU statistics agency Eurostat reveals significantly less economic polarization between regions in Germany and France.

Prime Minister Keir Starmer's Labour government has identified its primary goal as ensuring "good jobs and productivity growth in every part of the country."