Prime Minister Andy Burnham today announced a major transfer of power, funding, and responsibility from Westminster, described as the biggest in a generation. English mayors will now receive a share of income tax revenues for the first time, alongside business rates, allowing communities to directly benefit from economic growth.
The initiative aims to give local leaders greater control over decisions impacting jobs, transport, housing, and public services. The government also plans to support areas without a mayor in establishing strategic authorities to gain more control over local priorities.
Chancellor of the Exchequer John Healey stated that this move will allow communities to directly benefit when their economy grows. Secretary of State for Housing, Communities and Local Government Angela Rayner described the plan as the first step in rewiring the country, putting power back into the hands of local people.
From next spring, mayors will begin retaining a greater share of locally generated revenues, starting with business rates. Further details on income tax retention and business rates will be outlined in a roadmap at the Budget.
Local leaders are set to gain increased control over services including housing, transport, skills, and employment support. This includes powers to bring rail and bus services under local control, build more homes, manage large local transport schemes, and control 16-19 funding and employment support.