Burnham Announces Plans To Give Regional Mayors Share Of Income Tax
Prime Minister Andy Burnham has announced the launch the biggest transfer of power from Westminster in a generation, giving communities greater control over the decisions that shape jobs, transport, housing and public services in their area.
As part of the largest package of financial powers ever offered to English mayors, mayors will receive a share of income tax revenues for the first time.
This means when places create jobs and grow their economies, they will now keep more of the rewards – giving local leaders new powers to invest in what matters most locally.
The government wants every community to benefit from stronger local decision-making. Areas without a mayor will still be supported to establish strategic authorities and gain greater control over local priorities.
In his second week in office, the Prime Minister will tell his Cabinet that it is time to launch a new era of devolution – taking power and decision-making out of SW1 and putting it closer to people’s lives.
Prime Minister Andy Burnham said: “I said we’d take power out of Westminster and carry it into every postcode in the country. Today, we make good on that promise.
Under our plans, more of the taxes raised in a community will stay in that community. Soon, every local leader will have the power and resources to improve public transport, build homes and create jobs.
“I know what it’s like to be ignored by politicians in Westminster. I’m not going to make that same mistake now I’m PM.
“The whole of government will now pull together behind the people and places that desperately need our support. This is how we’ll bring back hope and bring power home to you.”
The plans, the government said will end the Whitehall-first culture that has held back local areas for decades, forcing departments to justify why powers should stay in Westminster rather than be handed to local leaders.
From next spring, mayors will begin retaining a greater share of locally generated revenues, starting with business rates. Further details on this and on income tax retention will be set out in a roadmap at the Budget and will be underpinned by the government’s firm commitment to fiscal discipline.
Over time, local areas will move away from dependence on Whitehall grants and towards funding that rewards local growth.
The ambition is to extend the benefits of devolution across the whole UK, working with devolved governments and local leaders to give communities more control over their future.
Welcoming the announcement Michael Kill, CEO of the Night Time Industries Association, said:
“This significant transfer of power and funding presents mayors across the country with a major opportunity to reshape their local economies. Allowing more locally generated income to return to local control should enable better-informed decisions, targeted investment and support that reflect the needs of individual towns and cities.
“The night-time economy, alongside our wider social and cultural economy, must have a meaningful place at the table as these new powers are implemented. These industries are central to local growth, employment, tourism, regeneration and community identity. Mayors must work directly with the businesses and organisations operating within them to ensure this opportunity delivers lasting and inclusive growth.
“Devolution must be matched by stronger infrastructure for nightlife businesses and a clear national and local strategic framework. Without that coordination, we risk replacing fragmented Whitehall decision-making with fragmented approaches across regions.
“Now is the time for the Government to establish a dedicated Night-Time Economy ministerial portfolio, providing the leadership and accountability needed to connect national policy with local delivery. This would ensure the Government’s growth agenda fairly recognises and supports the night-time, social and cultural economies in every part of the country.”