PM Burnham hands mayors share of income tax “to make lives better in every postcode”

Prime Minister Andy Burnham has announced a significant transfer of power from Westminster to communities across England, aiming to give local leaders greater control over decisions that impact jobs, transport, housing, and public services. As part of this historic shift, mayors will receive a share of income tax revenues for the first time, enabling them to invest in areas that matter most to their communities.

Under the new plans, mayors will keep more of the financial rewards generated by local job creation and economic growth, fostering stronger local decision-making and enabling them to allocate resources more effectively. The government believes that areas without a mayor will still receive support in establishing strategic authorities and gaining control over local priorities.

In his first days in office, Burnham emphasized the importance of bringing power and decision-making closer to people's lives, stating that the promise to take power out of Westminster and deliver it to every postcode in the country would soon be fulfilled. By shifting power, funding, and decision-making closer to local leaders, the government aims to create stronger local economies, improve public services, and empower communities to shape their own futures.

Key areas where local leaders will gain greater control include rail and bus services, housing development, large transport schemes, 16-19 funding, and employment support. The government's "local first" principle will ensure that ministers justify any retention of powers in Whitehall, prioritizing decentralization and local autonomy.