The government plans to let English mayors retain a share of locally collected taxes, including income tax revenue for the first time, as part of a broader devolution programme. Supporters say this could give regional leaders greater freedom to invest in transport, housing and jobs, although it would likely be matched by lower central government grants.

The precise settlements will be set out in the Budget on 28 October, with business-rate changes beginning next spring. A proposed model would allocate mayors 2.5p from each £1 of basic-rate income tax raised locally, potentially giving London £2.38bn, Greater Manchester £674m and the West Midlands £666m; spending rules remain disputed, particularly over whether mayors could offer local tax rebates.