Andy Burnham to give regional mayors share of income tax
Summary
Prime Minister Andy Burnham plans to give city-region mayors in England a share of income tax and part of business rates for the first time. This move aims to shift power and money from the central UK government to local leaders to help them manage housing, transport, and skills better.Key Facts
- Mayors of English city regions will receive a share of income tax revenue.
- Mayors will also keep some business rates collected in their areas.
- Exact tax shares will be announced in the autumn budget by Chancellor John Healey.
- The UK currently collects only 5.8% of taxes at the local level, the lowest among G7 countries.
- The plan intends to replace central government grants with tax revenues controlled locally.
- Income tax rates will not change due to this reform.
- Some critics worry poorer areas may get less money under the new system.
- The new funding model for mayors is set to start with business rates in April 2027 and income tax shares in April 2028.
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