31
Jul
'Biggest shift of power': Mayor reacts to PM's income tax plan
A move to hand mayors a share of income tax will be the “biggest shift of power” the country has seen, says the Mayor of York and North Yorkshire.
Prime Minister Andy Burnham announced this morning (July 31) that mayors of city regions in England would be given a share of income tax revenue for the first time.
Mr Burnham also revealed that the government will allow English strategic authorities to keep some cash from business rates collected in their areas, and gain greater control over services such as housing, transport, skills.
David Skaith, Labour Mayor of York and North Yorkshire, said the move was the biggest shift in power the country had seen.
Mr Skaith, who met the Prime Minister at 10 Downing Street yesterday, added the new powers would allow him to tackle the “ingrained issues” in the region.
He said:
This will be the biggest shift of powers, responsibilities and resources from Westminster to local leaders that we’ve ever seen before. The voices of people, communities, and businesses across our county will be heard more clearly than ever before as we decide how record levels of devolved funding are spent to tackle ingrained issues that have been holding York and North Yorkshire back for too long.
This shift in power will help us to make sure we can tackle the issues that hold us back the most, like poor transport, digital connectivity, the right houses in the right places, access to well paid, meaningful, jobs, and better opportunities to learn.
Regional mayors will receive a share of revenue from business rates from April 2027.
Further details, including how mayors will receive a share of income tax, are expected to be revealed by Chancellor John Healey in his autumn Budget.
York and North Yorkshire mayor David Skaith (left) is a key regional ally of Andy Burnham (right).
The Prime Minister said the move would deliver on his pledge to hand more powers back to the regions from Westminster.
Mr Burnham added that he wanted mayors to move away from dependence on Whitehall grants and towards funding that rewards local growth.
He said:
I said we'd take power out of Westminster and carry it into every postcode in the country. Today, we make good on that promise.
Under our plans, more of the taxes raised in a community will stay in that community. Soon, every local leader will have the power and resources to improve public transport, build homes and create jobs.
I know what it's like to be ignored by politicians in Westminster. I'm not going to make that same mistake now I'm PM.
The whole of government will now pull together behind the people and places that desperately need our support. This is how we'll bring back hope and bring power home to you.
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