Prime Minister Andy Burnham will grant England's regional mayors a share of income tax revenue and business rates for the first time, marking the largest transfer of power from Westminster in a generation. Metro mayors are expected to begin retaining business rate revenue from April 2027, with income tax allocations following from April 2028. The funds will replace existing central government grants rather than provide additional money, though combined authorities will gain the ability to take out 30-year loans against projected income to fund major projects.
Chancellor John Healey will set out the precise revenue shares in his autumn budget. Income tax rates will not change as a result of the reforms, and an equalisation system will ensure lower-tax areas continue receiving financial support. Housing, Communities and Local Government Secretary Angela Rayner said the move would [end the