England's regional mayors are to gain new financial powers, allowing them to retain a share of income tax generated in their areas from 2028 and business rates totalling tens of millions of pounds by April 2027. These measures are part of what Prime Minister Andy Burnham has called "the biggest transfer of power from Westminster in a generation."
The new funding model will replace existing grants, with local leaders stating it will "transform" their funding by reducing reliance on ringfenced Treasury handouts. Oliver Coppard, the Labour mayor of South Yorkshire, said the change provides "long-term certainty around income."
A significant consequence of these changes is that combined authorities will be able to take out 30-year loans against their projected income to fund major projects, which previously required Treasury approval. Henri Murison, chief executive of the Northern Powerhouse Partnership, suggested this could unlock large transport initiatives, such as an underground station at Manchester Piccadilly.
The specific proportion of income tax or business rates to be retained by combined authorities is still being determined by officials. Chancellor John Healey is expected to provide further details in the autumn budget.