Global Markets
Home›Global Markets›Trade & Tariffs›UK regional mayors to gain borrowing and tax share und…
UK regional mayors to gain borrowing and tax share under devolution plan
The plan would let mayors keep a share of locally generated income tax starting in 2028 and business rates totaling tens of millions of pounds by April 2027, replacing existing grants.
England’s regional mayors are set to gain new devolved powers over funding, including the ability to borrow to invest in major projects, under a plan to shift authority away from Whitehall, according to the Guardian Business.
The outlet reports that, under the proposal, mayors would keep a share of income tax generated in their area from 2028, along with business rates totaling tens of millions of pounds by April 2027.
Guardian Business says the new revenues would replace existing grants rather than add fresh funding, but local leaders argue that moving away from ringfenced Treasury handouts would materially change how regions finance projects.
Andy Burnham is due to announce the measures on Friday as part of what he called the biggest transfer of power from Westminster in a generation, with the plan also tied to a “local first” principle requiring ministers to justify why powers should stay in Whitehall.