According to The Guardian, Burnham will announce plans letting regional mayors retain a share of income tax raised in their areas from 2028 and keep business rates by April 2027. They'll also gain expanded borrowing freedom for major infrastructure projects. The money replaces existing grants rather than adding fresh cash. Local leaders argue this swap delivers something more valuable: predictable revenue and freedom from annual Treasury approval cycles.
This fight is about control, not generosity. When city regions can count on revenues they raise themselves, they can plan transport, housing, and infrastructure over a decade instead of making annual trips to London with a begging bowl. A mayor who grows the local economy now keeps part of the upside, not just the blame for failure.
Implementation is where devolution dies. The real test arrives in 2027 and 2028: will ministers actually let mayors make visible, politically risky choices with this money, or will Whitehall attach enough conditions to preserve the same old veto power?
Britain talks devolution constantly and usually means administrative homework for local leaders. Tax retention changes incentives. A mayor who can grow the local economy and keep part of the upside starts to govern instead of chase grants. The Treasury loses a bit of the leverage it has used for decades to keep cities on a short leash.
Filed to the World desk · Jul 30