Andy Burnham to give regional mayors share of income tax

Key Points:

• Prime Minister Andy Burnham announced that all English city region mayors will receive a share of income tax revenue for the first time, alongside retaining some business rates and gaining greater control over local services like housing and transport.
• The exact portion of taxes to be devolved will be detailed in Chancellor John Healey's autumn budget, with plans for mayors to start retaining business rates from April 2027 and a share of income tax from April 2028.
• The reforms aim to reduce reliance on central government grants and promote local economic growth by allowing more tax revenue to stay within communities, addressing the UK's historically centralized tax system.
• Critics, including opposition politicians, argue the plans lack detail and risk disadvantaging weaker local economies, while calls have been made for further devolution, such as control over housing illegal migrants.
• The government is developing an equalisation system to support areas with lower tax revenues and will publish a policy paper alongside the autumn budget, emphasizing a "local first" approach to power devolution.