UK PM Andy Burnham's devolution plan gives mayors share of income tax FAST-MOVING
Prime Minister Andy Burnham announced a fiscal devolution programme that will allow England's directly elected mayors to retain a portion of income tax and business rates collected in their areas. The move is presented as a way to shift power and resources out of Westminster and into local communities, enabling mayors to fund transport improvements, new housing and job creation.
London Mayor Sir Sadiq Khan is slated to receive a slice of the capital’s tax revenue, while other regional leaders such as Steve Rotheram and Ben Houchen have voiced concerns about the fairness of the allocation formula. Government analysis suggests London could gain about £2.3 bn in 2026‑27, compared with roughly £135 m for Hull and East Yorkshire. Details of the scheme will be set out in a white paper when Chancellor John Healey delivers the autumn budget.
The reforms aim to keep 95 % of tax revenue currently flowing to the central Treasury from shifting to local authorities, which presently receive only about 5 % of the money they collect.
Entities: Andy Burnham · Ben Houchen · John Healey · Sadiq Khan · Steve Rotheram
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] Tees Valley Mayor Ben Houchen expressed concern about regions being left out of fiscal devolution. (article 5d204391-0181-4773-bcb0-50ebd9ac7098)
- [○ 1 SOURCE] Analysis estimates London could receive about £2.3 bn extra in 2026‑27, while Hull and East Yorkshire would get roughly £135 m. (article 5d204391-0181-4773-bcb0-50ebd9ac7098)
- [○ 1 SOURCE] Currently about 95 % of England’s tax revenue goes to the central Treasury, leaving local authorities with roughly 5 %. (article f039b935-9376-4b93-a0b8-62a475d04df0)
- [● 5 SOURCES] UK Prime Minister Andy Burnham announced fiscal devolution giving mayors a share of local income tax and business rates. (multiple articles)
- [● 2 SOURCES] Details of the devolution scheme will be published in a white paper when Chancellor John Healey presents the autumn budget. (multiple articles)
- [○ 1 SOURCE] London Mayor Sadiq Khan will receive a slice of the capital’s income tax revenue under the plan. (article c2ecbed1-fc95-425e-a22a-34168586a40b)
- [● 5 SOURCES] Mayors will be able to retain a portion of income tax collected in their jurisdictions. (multiple articles)
- [● 5 SOURCES] The fiscal devolution is intended to let mayors fund public transport, housing and job creation. (multiple articles)