Andy Burnham is preparing to introduce a new initiative that would grant mayors in England a portion of income tax and business rates for the first time, marking a significant devolution overhaul.
The former Greater Manchester Mayor, now the Prime Minister, stated that this move would empower local leaders to retain a portion of the funds collected from their residents for community investments.
This transfer of power and funding from Westminster is being hailed as the most substantial in a generation, with assurances from the government that the income tax rate for taxpayers will remain unaffected by the reforms. Specifics, such as the extent of income tax retention for local leaders, will be outlined in the upcoming Budget by Chancellor John Healey.
Andy Burnham emphasized the commitment to decentralizing authority from Westminster to local communities, ensuring that a greater share of locally raised taxes remains within those areas for development purposes.
John Healey echoed this sentiment by highlighting the importance of empowering mayors with a share of income tax to enable direct benefits to communities as their economies flourish, ultimately driving growth across various regions.
Additionally, former Chancellor Rachel Reeves previously indicated a shift towards granting regional mayors control over a portion of national taxes that have traditionally been managed by central government, further emphasizing the trend towards decentralization.
The government, in collaboration with No10 North, also announced plans to enhance local leaders’ control over essential services like housing, transport, and skills development. This includes granting more authority to manage rail and bus services locally and expediting the construction of trams and metros.
Angela Rayner, Secretary of State for Housing, Communities and Local Government, emphasized the government’s commitment to ending the dependency on central funding and providing local leaders with the necessary tools to instigate the desired changes within their communities.
