Burnham faces criticism over plans for mayors to get share of income tax
The UK government is planning to allow regional mayors to retain a portion of income tax and business rates to fund local public services. While the Prime Minister frames this as a major devolution of power, some local leaders and opposition parties have raised concerns about potential economic inequality and the lack of tax-rebate mechanisms.
Why it matters
This represents a significant shift in UK fiscal policy that could fundamentally change how local governments are funded and how much autonomy regional leaders have over their economies.
Image source, Reuters By James Gregory Political reporter Published 32 minutes ago 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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