Andy Burnham to give regional mayors share of income tax
UK Prime Minister Andy Burnham has announced plans to allow regional mayors to retain a share of local income tax and business rates. This policy aims to decentralize power from Westminster and provide local leaders with more control over regional services.
Why it matters
This represents a significant shift in UK fiscal policy, potentially addressing the country's high level of centralized tax collection compared to other G7 nations.
Image source, EPA Image caption, Burnham wants to give more powers to metro mayors, such as Steve Rotheram and Kim McGuinness (pictured here)
Prime Minister Andy Burnham will give all mayors of city regions in England a share of income tax revenue for the first time, as part of his drive to transfer power from Westminster to local leaders.
Burnham will also allow mayors of English strategic authorities to keep some cash from business rates collected in their areas, and gain greater control over services such as housing, transport, skills.
The government has not yet decided the exact portion of taxes mayors will be given, with more details to be announced when Chancellor John Healey delivers his first budget in the autumn.
Critics said the plans lacked detail and could lead to areas with weaker economies losing out on funding.
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