English mayors to receive share of income tax under Burnham reforms

ANDY BURNHAM will give mayors in England a share of income tax revenue for the first time as part of his government's plans to devolve power from London and hand more authority to regional leaders.

The move is part of the prime minister's push to decentralise the British state by giving more powers to regional mayoralties instead of the Westminster government.

Burnham, who served as mayor of Greater Manchester before becoming prime minister, has made devolution one of his first political priorities.

He has also set up Number 10 North, a Manchester office of Downing Street, to co-ordinate the devolution programme, with the aim of supporting jobs and growth across the country.

Burnham said he knew what it was like "to be ignored by politicians in Westminster" and that he would not "make that same mistake now I'm PM".

"Under our plans, more of the taxes raised in a community will stay in that community. Soon, every local leader will have the power and resources to improve public transport, build homes and create jobs," he said in a statement.

Burnham's office said mayors would begin receiving a "greater share of locally generated revenues" from next spring. It added that relative local needs would be taken into account to ensure funding is shared fairly across the country.

The changes will begin with business rates, which Burnham's government has already cut for pubs. His office said more details on business rates and income tax retention would be included in a fiscal budget due later this year.

The announcement applies only to England. The government said it would work with the devolved governments in Scotland, Wales and Northern Ireland to try to achieve similar outcomes.

Devolution across England remains uneven. Metro regions such as Greater Manchester have mayors with significant powers, while around half of England's population does not live in areas covered by such mayors.