Burnham faces criticism over plans for mayors to get share of income tax
The UK government is facing backlash over plans to allow regional mayors to retain a portion of income tax and business rates. While Prime Minister Andy Burnham supports the move as a shift of power to the regions, some Conservative mayors argue for the ability to offer tax rebates to residents.
Why it matters
The debate highlights tensions between central government fiscal control and the push for local economic autonomy in the United Kingdom.
Image source, Reuters By James Gregory Political reporter Published 31 July 2026 The government is facing criticism over its plan to allow regional mayors to keep a share of income tax and business rates in England.
Andy Burnham says that the proposals, expected to be phased in from next April, will give metro mayors powers to invest the money in their communities for public services.
The prime minister said on Friday that this amounted to "the biggest shift of power out of Whitehall and Westminster" to regions across the UK.
But Lord Houchen, the Conservative mayor of Tees Valley, argues he should be able to offer taxpayers a rebate instead, while opposition parties say the plans could lead to areas with weaker economies losing out.
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