England mayors to keep share of income tax and business rates in devolution push
EWU•England’s regional mayors will retain 20% of business rates revenue from next year and receive a share of income tax from 2028, finance minister John Healey said. They will also be able to charge a levy on overnight stays from 2028.
1. New local revenue powers
Regional mayors in England will be able to keep 20% of business rates revenue from next year and a share of income tax from 2028. Healey also said they will receive powers to charge a levy on overnight stays from 2028.
2. Funding local investment
Healey told parliament the new long-term funding streams could support investment in local infrastructure. Fiscal devolution is a priority for Prime Minister Andy Burnham, who has called it a “rewiring” of the British state. About 6% of UK tax revenue is raised below the national-government level, compared with 20% in France and about half in Germany and the United States, according to the Organisation for Economic Co-operation and Development.
