Prime Minister Burnham proposes income-tax share for England's metro mayors
Prime Minister Andy Burnham announced that English city-region mayors will receive a portion of local income-tax receipts and retain some business-rate revenue, pending details in the autumn budget.
Andy Burnham, now Prime Minister, unveiled a devolution package that would give mayors of England's city regions a share of income-tax revenue for the first time, alongside a retained portion of business-rate collections. The initiative is intended to reduce reliance on central grants and reward local economic growth, with business-rate shares starting in April 2027 and income-tax shares from April 2028. Details on the exact percentage each mayor will receive are to be announced alongside Chancellor John Healey's autumn budget, and an equalisation system is being drafted to protect low-tax-base areas.
Burnham framed the move as fulfilling his pledge to bring power home to every postcode. Opposition figures, including Sir Mel Stride and Reform UK’s Zia Yusuf, warned the plan lacks detail and could widen regional disparities. Metro mayors such as Tracy Brabin welcomed the prospect, while Conservative mayor Ben Houchen said he would use any tax slice to fund rebates for residents.
Why it matters
Shifting tax revenue to local mayors could reshape funding and decision-making across England's regions.
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