- Prime Minister Andy Burnham will give all mayors of city regions in England a share of income tax revenue for the first time, as part of his drive to transfer power from Westminster to local leaders.
- English metro mayors are expected to start retaining some revenue from business rates from April 2027, and receive a portion of income tax from April 2028.
- The government should allocate mayors 2.5p in every pound raised by the 20p basic rate of income tax in their areas.
- Burnham will also allow mayors of English strategic authorities to keep some cash from business rates collected in their areas, and gain greater control over services such as housing, transport, and skills.
- The government has not yet decided the exact portion of taxes mayors will be given, with more details to be announced when Chancellor John Healey delivers his first budget in the autumn.
- The government is also working out the details of an equalisation system that will ensure areas where less tax is collected continue to receive financial support.
- Burnham stated the move would "make good" on his pledge to "bring power home" to "every postcode in the country".
Andy Burnham has unveiled a significant policy shift that will empower regional mayors in England by allowing them to share in income tax revenue and retain business rates. This initiative is part of Burnham's broader strategy to decentralize authority from Westminster to local leaders.124
Starting in April 2027, English metro mayors will begin retaining a portion of the business rates collected in their jurisdictions. Additionally, they are set to receive a share of income tax revenue from April 2028. The exact percentage of income tax allocated to mayors is still under discussion, with the government expected to announce specifics in Chancellor John Healey's first budget this autumn.
Burnham emphasized that this move fulfills his commitment to
“Burnham stated the move would "make good" on his pledge to "bring power home" to "every postcode in the country." The government plans to allocate mayors 2.5p in every pound raised by the 20p basic rate of income tax in their areas, with further details to be announced in the autumn budget.”
