- Andy Burnham will announce the measures on Friday as part of what he called “the biggest transfer of power from Westminster in a generation”.
- England’s regional mayors will be able to break out of the “death grip of the Treasury” by borrowing to invest in big projects under “transformational” plans to shift power out of Whitehall.
- Experts said one of the most significant consequences was that it would allow combined authorities to take out 30-year loans against their projected income to fund major projects that previously needed Treasury approval.
- Oliver Coppard, the mayor of South Yorkshire, said: “It’s really important because it gets us out of the death grip of the Treasury and gives us that long-term certainty around income.”
- Henri Murison, the chief executive of the Northern Powerhouse Partnership, said the change “completely transforms” what combined authorities would be able to do.
- The thinktank IPPR North described the move as “the most significant shift in how England is funded in a generation”.
Andy Burnham is set to announce a groundbreaking plan that will allow regional mayors in England to retain a share of income tax and business rates, starting in 2028. This initiative is described as the most significant transfer of power from Westminster in a generation.1
For the first time, mayors will keep a share of income tax generated in their area, along with business rates totaling tens of millions of pounds by April 2027. Oliver Coppard, the mayor of South Yorkshire, emphasized the importance of this change, stating, “It’s really important because it gets us out of the death grip of the Treasury and gives us that long-term certainty around income.”4
Experts believe that this shift will enable combined authorities to take out 30-year loans against their projected income, facilitating funding for major projects that previously required Treasury approval. Henri Murison, chief executive of the Northern Powerhouse Partnership, noted that the change “completely transforms” what combined authorities can achieve.35
The thinktank IPPR North has characterized the move as “the most significant shift in how England is funded in a generation.” This plan is expected to provide regional mayors with the financial autonomy necessary to drive local development and investment.6
“Oliver Coppard, the mayor of South Yorkshire, emphasized the importance of this change, stating it provides long-term income certainty. Henri Murison, chief executive of the Northern Powerhouse Partnership, noted that the shift 'completely transforms' the capabilities of combined authorities.”
theguardian.com
