Prime Minister Andy Burnham outlines plans for English mayoral devolution that would give metro mayors a share of income tax revenues and business rates to decide how they are spent. The government says the proposals do not change the rate of income tax paid by residents, but change how some tax receipts are allocated between Westminster and local government. Burnham frames the move as part of a wider promise to shift power out of central government and into communities, arguing it will support growth and improvements in local services.
The measures focus on areas with existing mayoral arrangements and are set to be detailed further as part of the autumn budget process, with additional information expected when the chancellor presents the first budget. Ministers also describe the reforms as a way to remove barriers that can slow projects and to apply a “local first” approach.
While powers already cover areas such as transport, skills, and infrastructure planning, the new tax-sharing element is presented as intended to fund local priorities including housing, transport, and employment support. Opposition parties challenge aspects of the scheme, with criticism that it could create uneven access to devolution powers across England, depending on whether an area has mayoral authority.
