Andy Burnham Gives Mayors A Share Of Income Tax

Andy Burnham is set to give English mayors a share of income tax in what the government has described as the “biggest transfer of power for a generation”.

The prime minister hopes these new powers will benefit communities directly, especially if the economy grows.

These reforms will not change the rate of income tax paid by residents, but how the revenues will be allocated between Westminster and local government.

Burnham has vowed to put devolution at the heart of his government mission.

He already launched a No.10 North operation last week to show his commitment to moving power out of London.

This new plan will allow local leaders to gain greater control over services like housing, transport, skills, employment support and public services.

Mayors will be able to build more homes where needed, make rail and bus services more reliable and built at a faster rate.

The new powers will supposedly help remove Whitehall barriers which can slow down projects, and set up a “local first” principle.

Ministers will also “be expected to justify why powers should remain in Whitehall rather than being devolved,” according to the government.

The civil service is set to shrink too and become “more strategic”, with responsibilities focused at a national level.

A White Paper is due alongside the autumn Budget with a full programme of reforms and timetable for implementation.

While this is currently focused on England, the government has signalled it will look to devolve to communities and regions within nations with devolved governments.

Right now the UK has the lowest whole economy investment out of all G7 countries, according to the Office for National Statistics (ONS).

The PM 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.”

Communities secretary Angela Rayner said: “This is the first step in our plan to rewire this country and build a better future, where power is no longer hoarded in Westminster but is put back in the hands of local people – where it belongs.

“Our devolution revolution is about bringing an end to the begging-bowl culture of the past, and instead making sure our local leaders have the tools they need to drive the change that communities have been crying out for.

“We need every region to be firing on all cylinders if we want good growth in every postcode, and we will do everything in our power to make that a reality.”

Listen to Commons People, the podcast that makes politics easy. Every week, Kevin Schofield and Kate Nicholson unpack the week’s biggest stories to keep you informed. Join us for straightforward analysis of what’s going on at Westminster.