Scilly’s councillors have been asked to consider their response to any future devolution for Cornwall.
The report, written by Chief Executive Theo Leijser, says granting new powers for Cornwall will “undoubtedly have an impact on the Isles of Scilly.”
He had expected the Chancellor to provide further details on devolution for Cornwall during his autumn budget speech, but this didn’t happen.
Mr Leijser says it’s still unclear what any proposals would look like and particularly what it would mean for the islands.
It could result in the creation of a combined authority for the region, he says.
Councillors were provided with a copy of a draft case for devolution, written by John Pollard, the leader of Cornwall Council.
In it, Mr Pollard calls for more regional control of EU funding, a local 2p a litre fuel tax to pay for improvements to road infrastructure and new powers to manage the ownership of second homes.
Mr Leijser has asked councillors to provide Scilly’s response to any possible devolution by the middle of this year.