
Andy Burnham is set to give all regional mayors a share of income tax revenue as part of his devolution plans to transfer power out of Westminster.Critics, including rebel Labour backbenchers, claim the plans risk “locking out” regions without mayoral figures and could lead to areas with weaker economies losing out on funding.The plans will allow mayors to keep some cash from business rates collected in their areas and gain greater control over services such as housing and transport.The announcement comes as voters in Greater Manchester took to the polls yesterday, with the now-Prime Minister’s replacement due to be announced this afternoon.Mr Burnham said the move would “make good” on his pledge to “bring power home” to “every postcode in the country”, adding: “Under our plans, more of the taxes raised in a community will stay in that community.”In the current climate, regional mayors in England receive most of their funding from central government grants – now expected to retain some revenue from April 2027 and receive a portion of income tax from April 2028.Tracy Brabin, the Labour mayor of West Yorkshire, told the BBC: “This will enable us to deliver on our ambitious plans including vital improvements to public transport, providing better skills and employment support.”Meanwhile, Shadow Chancellor Sir Mel Stride said: “Unless Burnham is going to launch another tax raid elsewhere, borrow even more, or make cuts to central government grant, there is no new money being announced here.”Mr Burnham said the move would ‘make good’ on his pledge to ‘bring power to every postcode in the country’ | PAHe said areas with weaker local economies could end up losing out – “the opposite of what Andy Burnham claims he wants to achieve”. More details are expected to be announced when Chancellor John Healey delivers his first budget this autumn.The Chancellor said: “The people who best understand what skills employers want, what transport an area needs and where investment can make the biggest difference are those who live there.”For the first time we’re giving Mayors a share of income tax so communities directly benefit when their economy grows – passing power out of Westminster and driving growth in every postcode.”This is the way we start to build new hope and advance the working people of this country.”Meanwhile, Housing Secretary Angela Rayner said: “This is the first step in our plan to rewire this country and build a better future, where power is no longer hoarded in Westminster but is put back in the hands of local people – where it belongs.”Our devolution revolution is about bringing an end to the begging-bowl culture of the past, and instead making sure our local leaders have the tools they need to drive the change that communities have been crying out for.”We need every region to be firing on all cylinders if we want good growth in every postcode, and we will do everything in our power to make that a reality.”But First Secretary of State Louise Haigh confirmed this morning “it is “not possible at the moment” for English mayors to give their local residents tax rebates under the plans.Louise Haigh said tax rebates to residents would ‘not be possible’ | GB NEWSSeveral mayors said they would create schemes to put money back into the pockets of taxpayers instead of investing in public services, including Conservative Tees Valley mayor Lord Houchen..However, Ms Haigh, who is also Chancellor of the Duchy of Lancaster, said she is “not convinced it would be possible” for Lord Houchen to set up a rebate scheme.She said: “We’d have to see the details of that, but it certainly isn’t possible at the moment. Those kind of schemes necessitate HMRC to set up full schemes, that’s just not possible at the moment.“The way that the mayors are set up and work is to reinvest the money into their public services, into their local economies. It’s not possible at the moment.“We’d have to see, obviously, plans and a scheme put forward by Ben Houchen, but that’s not how these powers and resources are intended to be used.”In response, Tees Valley Mayor Lord Houchen said: “So devolution means getting people’s taxes to spend but not being allowed to give it back to them.”Last time I spoke to the PM, devolution was about Whitehall not dictating what areas can or can’t do. It doesn’t sound much like devolution to me? Just an excuse for a tax grab.”They want to reward mayors for growing the economy, but the best way to grow the economy is to let people keep more of what they earn.”