Mapped: Areas most likely to benefit as Burnham eyes income tax overhaul

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Mapped: Areas most likely to benefit as Burnham eyes income tax overhaul

The Independent · 1 day ago

Metro mayors across England could gain greater control over local spending under plans reportedly being considered by Prime Minister Andy Burnham to share income tax receipts more widely, marking a significant step in his devolution agenda. However, experts have warned the policy risks deepening a "postcode lottery" if not carefully designed, since around half of England's population lives outside areas with an elected mayor and would therefore miss out on any benefits.

Burnham, the former Manchester mayor, is expected to set out plans this week to give England's 14 metro mayors greater spending powers as part of his pledge for "good growth in every postcode". Areas without a mayor, such as Cornwall, could face pressure to accept devolution deals despite past opposition, with Labour MP Perran Moon warning of "building fear" within the party that non-mayoral regions will be disadvantaged, as already seen with the 2025 £1.5bn local growth fund. A King's College London and Harvard Kennedy School report, co-authored by Ed Balls, cautioned that devolution must come with genuine redistribution to avoid widening regional disparities, while the government said non-mayoral areas would get "foundation strategic authorities" and greater business rate retention instead.

  • Burnham considers sharing income tax receipts with metro mayors
  • Areas without mayors, like Cornwall, risk losing out
  • Experts warn devolution needs redistribution to avoid a "postcode lottery"

Government Politics

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