Burnham to Give Mayors a Share of Income Tax
Andy Burnham has announced that England’s regional mayors will keep a share of the income tax and business rates raised in their areas, in what the Prime Minister billed as the biggest transfer of power from Whitehall in a generation. The move, his first major domestic policy since taking office, is designed to free mayors from what he called the Treasury’s “death grip”. Ministers gave no figure for how much money would be devolved.
The plan marks a decisive turn towards the kind of English devolution Mr Burnham long championed as mayor of Greater Manchester, giving city regions a direct stake in their own economic success. Supporters argue that letting areas keep the proceeds of growth will sharpen the incentive to build and invest; critics will warn it could widen the gap between richer and poorer regions and complicate the public finances. The Treasury has historically resisted surrendering control of tax revenue. Much will depend on detail still to be set out. Watch for the share of tax to be devolved and how the shortfall to central budgets is handled.