UK PM Burnham unveils devolution gives mayors tax share

Prime Minister Andy Burnham has launched what his government calls the largest transfer of power from Westminster in a generation, granting local leaders across England significant new authority over housing, transport, jobs, and public services. The announcement, made on August 5, 2026, includes a landmark plan to give mayors a share of locally generated income tax revenues for the first time, aiming to reward communities that grow their local economies.

The initiative, described by the Prime Minister as fulfilling a campaign promise, is designed to shift funding and decision-making away from Whitehall. Under a new "local first" principle, government ministers will be expected to justify why powers should remain in central government rather than be devolved. The changes will grant mayors greater control over local transport schemes, including rail and bus services, planning and regeneration to build more homes, and funding for skills and employment support for young people and jobseekers.

Chancellor John Healey stated that the people who best understand local needs are those who live in an area, and that giving mayors a share of income tax will allow communities to directly...