Andy Burnham tax reform will give English regional mayors a share of income tax revenue for the first time, marking one of the biggest devolution changes in decades. Prime Minister Andy Burnham says the plan will transfer more financial power from Westminster to local leaders while helping regional economies grow.
Andy Burnham Tax Reform Gives Mayors New Powers
Prime Minister Andy Burnham announced that city region mayors in England will receive a share of income tax revenue under his new devolution plan.
The government will also allow strategic authorities to retain part of their business rates and gain greater control over housing, transport, skills and economic development.
Officials will reveal the exact percentage of tax revenue in Chancellor John Healey’s autumn budget.
How Andy Burnham Tax Reform Will Work
The government plans to introduce the new funding system in stages.
Regional authorities are expected to begin retaining part of their business rates from April 2027. They will also receive a share of income tax from April 2028.
The reform will not change existing income tax rates for taxpayers.
Instead, it will allow more locally generated revenue to remain within communities and support regional investment.
Devolution Plans Aim to Boost Local Growth
Burnham said the reforms fulfil his promise to bring decision-making closer to local communities.
He argued that mayors and regional leaders are better placed than Westminster to make decisions on transport, housing and economic development.
The government also confirmed that mayors will receive faster approval for major infrastructure projects, including new roads, tram systems and light rail.
Andy Burnham Tax Reform Faces Political Criticism
Opposition parties questioned whether the proposals could leave weaker regional economies with less funding.
Conservative leaders argued that the government had not provided enough financial detail.
The Liberal Democrats warned that rural communities without mayors could miss out on devolved powers.
However, ministers insisted that new strategic authorities across England would also benefit from additional investment and decision-making powers.
What Happens Next
The Andy Burnham tax reform will become clearer when the government publishes its devolution policy paper alongside the autumn budget.
Officials are also developing a funding system to ensure areas with lower tax revenues continue receiving financial support while regional leaders gain greater control over local growth initiatives.
