In a significant shift in fiscal policy, Prime Minister Andy Burnham has announced that all regional mayors in England will receive a share of income tax revenues. This move aims to decentralise financial power from Westminster, allowing local leaders more control over their economies.
Starting in April 2028, metro mayors will retain a portion of income tax collected in their areas, alongside business rates from April 2027. This is intended to reduce reliance on central government grants and promote local economic growth. Critics, however, warn that the lack of detailed plans could disadvantage regions with weaker economies, potentially leading to unequal funding.
The reforms are expected to transform how local governments operate, with a focus on accountability and community investment. Burnham’s administration argues that this will empower local areas, ensuring more tax revenue stays within the community. The exact share of income tax for each mayor remains to be determined, with discussions ongoing.
As Burnham seeks to implement these changes, the government will also develop a system to support areas that may collect less tax, ensuring financial fairness. The details of this initiative will be unveiled alongside the autumn budget, marking a pivotal moment in UK devolution efforts.
Source: BBC News
