Andy Burnham has Announces Plans to Redistribute Income Tax Revenue to English Mayors

The decentralization initiative aims to grant city region leaders greater control over local finances and services.

Prime Minister Andy Burnham has unveiled a plan to allocate a portion of income tax revenue to all mayors of England's city regions, marking a significant shift in the transfer of authority from Westminster to local leadership.

Under the proposed framework, mayors of English strategic authorities will also be permitted to retain a share of business rates collected within their jurisdictions, alongside gaining increased autonomy over essential services including housing, transport, and skills training.

The precise allocation of tax revenue remains undetermined, with specific details expected during Chancellor John Healey's inaugural budget this autumn.

While the initiative seeks to address the UK's highly centralized fiscal structure—which, according to OECD data, collects only 5.8% of national taxes at the local level, the lowest among G7 nations—the proposal has faced criticism.

Detractors argue the plan lacks sufficient detail and may inadvertently disadvantage regions with weaker economies.

Burnham defended the policy as a fulfillment of his commitment to "bring power home" to "every postcode in the country." He emphasized that the restructuring ensures more tax revenue generated within a community remains within that same community.