A leading business figure says keeping more of the tax take in the region is welcome – but must extend to all parts of Coventry and Warwickshire.

New Prime Minister Andy Burnham's latest commitment to devolution is giving mayors of city regions a share of business rates and income tax to spend locally.

But Corin Crane, chief executive of the Coventry and Warwickshire Chamber of Commerce, said areas such as Warwickshire are at a different stage of devolution to cities such as Coventry.

He said: "It's been a whirlwind couple of weeks for the new Prime Minister and he's keen to make good on his promise to put more power in the hands of local regions.

"As a Chamber, we know only too well that decisions are best made regionally because you are closer to the issues and understand what's holding back economic growth.

"So, we welcome this latest move to allow regions to keep some of the business rates and income tax raised because it means it can be spent on the services and infrastructure to best serve the local area.

"However, we want the whole of Coventry and Warwickshire to benefit from this policy. Right now, Coventry is part of the West Midlands Combined Authority but Warwickshire – which is soon to be split into councils for the north and the south – is at a different stage of devolution.

"Therefore, the Government must find a way to ensure that more devolved powers and funding reach areas such as Warwickshire as quickly as possible if the Prime Minister wants to realise his ambition of 'good growth in every postcode'.

"As the voice for business in this region, we know that businesses don't look at political boundaries – they look at supply chains and employment patterns. They know and we know that Coventry and Warwickshire works as a regional economy so we stand ready to support and be part of the conversation that makes this policy work for the whole region."

Kate Shoesmith, Director of Policy at the British Chambers of Commerce, said: "Putting more decision-making closer to local economies can help unlock growth. But it must be

focused on the practical barriers businesses face every day; from skills and transport to infrastructure and planning.

"The acid test will be whether firms in communities across England, both within and outside strategic authorities, see stronger conditions for trade, investment and productivity.

"This can only happen if business insight is built into local decision-making from the start, not an afterthought when the main decisions have already been made.

"As a place-based network, Chambers are ready to play their part and contribute to making devolution a positive success. They are rooted in their economies and communities and can turn real-time business intelligence into practical growth solutions.

"It is vital that every part of the country benefits from these changes. Mayoral Strategic Authorities can be powerful engines for delivery where they have the expertise, funding and accountability to succeed.

"But around half of England still sits outside these arrangements, and they cannot be left behind. The next phase of devolution must work for mayoral and non-mayoral areas alike.

"And while England is in focus for today's announcement, we must apply the same principles across the whole of the UK.

"Chambers can help ensure that happens; giving businesses everywhere a strong voice in local growth plans, so that devolved funding truly delivers growth in every postcode."