Arabic version: بيرنهام يخطط لمنح الأقاليم الإنجليزية حصة من ضريبة الدخل

According to BBC News, Prime Minister Andy Burnham will give mayors of city regions in England a share of income tax revenue for the first time, as part of plans to transfer power from Westminster to local leaders. Mayors of English strategic authorities will also be able to retain some business-rates revenue and gain greater control over housing, transport and skills.

The government has not decided the precise share of tax revenue that local leaders will receive. Further details are due when Chancellor John Healey delivers his first autumn budget. Metro mayors are expected to retain some business-rates revenue from April 2027 and receive a portion of income tax from April 2028, with grants intended to be replaced by those revenues.

Burnham said the policy would fulfil his pledge to “bring power home” to “every postcode in the country”. He said more taxes raised in a community would remain there. Income-tax rates would not change under the reform, including the 20% basic rate on income from £12,571 to £50,270.

First Secretary of State Louise Haigh said areas would not need elected mayors to benefit. She said strategic authorities would be created across England and could hold the powers and resources, including a share of income tax and business rates. Strategic authorities bring councils together to make collective decisions on regional matters such as transport and economic development.

Ministers are also developing an equalisation system to ensure places where less tax is collected continue to receive support. Conservative shadow chancellor Sir Mel Stride said the announcement lacked detail and warned weaker local economies could lose out. Liberal Democrat leader Sir Ed Davey said the plans risked a “postcode lottery”. Labour West Yorkshire mayor Tracy Brabin welcomed the proposal, while Conservative Tees Valley mayor Ben Houchen said he would prefer tax cuts.