Takaichi Attends FY2026 Second National-Local Consultation
Overview
Prime Minister Takaichi attended the second consultation between the national and local governments for FY2026, discussing the Regional Future Strategy and the promotion of decentralization reform. In her remarks, she explained fiscal spending to encourage domestic investment, industrial cluster plans, a bill to ease the burden on middle- and low-income earners, and measures to address administrative burdens on local governments. She also said the national and local governments would establish a forum to discuss social security and education policies and work together on population strategy and disaster prevention and mitigation.
Key points
- The meeting discussed the Regional Future Strategy and the promotion of decentralization reform.
- Seventy-four industrial cluster plans that make use of regional strengths have been formulated and published.
- The Cabinet approved a bill to ease the burden on middle- and low-income earners and submitted it to the Diet.
- A forum will be established for the national and local governments to discuss social security and education policies.
Overview
On October 20, 2026, Prime Minister Takaichi attended the second consultation between the national and local governments for FY2026 at the Prime Minister's Office. The agenda was the Regional Future Strategy and the promotion of decentralization reform.
The Prime Minister said the government would pursue "responsible proactive fiscal policy," accelerate policies to realize a "strong economy," and "make the Japanese archipelago strong and prosperous." She set out a policy of planning large-scale, long-term, highly predictable fiscal spending to draw domestic investment, with the Japan Growth Strategy and the Regional Future Strategy as its two pillars.
Impact
She said the government would form industrial clusters in each region and connect them to regional economic growth.
She said the full amount of the decrease in local consumption tax revenue would be covered with national funds, and appropriate measures would be taken to avoid disrupting local fiscal management.
Details
Under the Regional Future Strategy, 74 industrial cluster plans that draw on the strengths of each region have been formulated and published, and concepts for hundreds of new plans are advancing across Japan.
She identified easing the burden on middle- and low-income earners struggling with taxes, social insurance premiums, and rising prices as the top priority. The Cabinet approved the "Consumption Tax and Support Contributions Bill" on October 9 and submitted it to the Diet. She said careful consultations with local representatives would continue to minimize administrative burdens on local governments.
Taking local views into account, a forum will also be established to discuss the planning, development, and implementation of national policies on social security and education. She also said the government would advance cooperation with local governments on population strategy and disaster prevention and mitigation measures.