Burnham faces criticism over plans for mayors to get share of income tax
Tory mayor Lord Houchen wants to offer a rebate, but the prime minister says it should be reinvested in communities.
By BBC News
Andy Burnham’s plans to let English mayors keep a share of income tax have drawn criticism, with Conservative mayor Lord Houchen arguing that taxpayers should instead receive a rebate.
According to the BBC, the government wants to allow regional mayors in England to retain a portion of income tax and business rates, with the changes expected to start from April 2027 for business rates and April 2028 for income tax.
Burnham said the move would give metro mayors more power to spend money in their communities on public services. The prime minister said on Friday that it would be “the largest transfer of authority from Whitehall and Westminster” to regions across the UK.
Lord Houchen, the Conservative mayor of Tees Valley, told BBC Radio 4’s World at One that he would prefer taxpayers to “retain more of their own funds” and said he would want a rebate scheme if he were given a share of local income tax.
First Secretary of State Louise Haigh told the BBC that no system for mayors to offer rebates currently exists. Burnham rejected the idea of mayors acting like “mini-chors of exchequer”, saying the reforms were not intended to change tax or personal finance policy.
The BBC report said the exact proportion of tax mayors will receive has not yet been decided.