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Thu, 30 Jul 2026

Thu, 30 Jul 2026 Andy Burnham to give regional mayors share of income tax

The prime minister says the move will give power to "every postcode" but critics say the plans lack detail.

* Prime Minister Andy Burnham plans to give metro mayors in England a share of income tax revenue, as part of his drive to transfer power from Westminster to local leaders.
* Mayors will also be allowed to keep some cash from business rates collected in their areas and gain greater control over services such as housing, transport, skills.
* The exact portion of taxes mayors will receive has not yet been decided, but details are expected to be announced when Chancellor John Healey delivers his first budget in the autumn.
* Critics have raised concerns that areas with weaker economies could lose out on funding under the new system.
* Burnham's plan aims to decentralize power and allow local communities to benefit from their own tax revenue.
* Metro mayors will start retaining some business rate revenue from April 2027, and receive a portion of income tax from April 2028.
* The reform is expected to replace grants with revenues from these taxes, but officials are still figuring out how it will work in practice.
* Some metro mayors could end up with more money to spend if they grow their local economies and expand their tax bases.