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UK to give England metro mayors a share of income tax revenues
The government has not set the exact income tax portion, with details expected when Chancellor John Healey delivers his first budget in autumn.
Prime Minister Andy Burnham says England’s city-region mayors will receive a share of income tax revenue for the first time, as part of a broader plan to transfer powers from Westminster to local leaders, the BBC reports.
Burnham also plans to let mayors of English strategic authorities keep some of the business rates collected in their areas and gain more control over services including housing, transport, and skills. The government has not yet decided what portion of taxes mayors will receive, with more details to be announced when Chancellor John Healey delivers his first budget in autumn.
Critics argue the proposals lack detail and could disadvantage areas with weaker economies. Burnham said the plan would keep more taxes raised in a community within that community, and he framed it as fulfilling his pledge to bring power home “to every postcode.”
The BBC notes the UK is an outlier for local fiscal control, with only 5.8% of national taxes collected at a local level, the lowest in the G7, compared with France at 20.4%, Japan at 36%, and the US at 45.7%, citing the OECD. It also says metro mayors are expected to begin retaining some business rates from April 2027 and receive income tax shares from April 2028.