Burnham to free mayors from ‘Treasury death grip’ with new devolved powers
Summary
England’s regional mayors will gain new powers to borrow money and keep a share of local income tax and business rates starting in 2027 and 2028. These changes aim to give mayors more control over spending and reduce their dependence on Whitehall, the central government in London.Key Facts
- Mayors in England will keep part of the income tax generated in their areas from 2028.
- They will also keep business rates revenue totaling tens of millions of pounds by April 2027.
- This income replaces previous government grants, not adding new money overall.
- Mayors will be able to borrow money based on future income for large projects like housing and transport.
- The government plans to move decision-making from Whitehall to local areas with a “local first” policy.
- New powers might include control over schools, health services, and childcare, similar to the role of police commissioners.
- England’s civil service is expected to become smaller as more authority shifts out of London.
- Details on how much tax revenue each area will keep will be announced in the autumn budget.
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