Government to give mayors share of local income tax
Mayors to get slice of income tax under new plans

The Prime Minister has unveiled plans to give mayors a portion of their area's income tax, marking what the government describes as the biggest transfer of power and resource in a generation. First Secretary of State Louise Haigh wrote in The Mirror that the days of Westminster hoarding power are over.

Ms Haigh, a close ally of Andy Burnham, said that for forty years decisions about towns and cities have been taken behind closed doors in Whitehall. She described this as a broken system that has drained power and investment from communities, hollowed out high streets and left young people struggling to find decent jobs.

Local leaders gain control

Ms Haigh wrote that the government is kickstarting change so that local leaders have the flexibility to help their communities flourish. From employment to housing, transport to infrastructure, decisions will be reshaped so that places have the powers needed to improve public services and encourage local investment.

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Instead of Westminster calling the shots, local leaders will have far more control over how money raised locally is spent. This gives each area the opportunity to channel investment into priorities such as improving bus services or building new council homes.

Support for young people

The changes also give mayors and local councils new powers to combine education, employment and health support, making it easier to help young people into work. By partnering with local businesses, the government aims to ensure young people have the skills and training needed for jobs and apprenticeships in their area.

Ms Haigh concluded that this is how the government will rewire Britain, put people back in control, create new jobs and apprenticeships, and get high streets thriving again.

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