PM to unveil major devolution drive

The Prime Minister is preparing to announce a significant devolution drive, with proposals that could see mayors receive a share of national income tax revenue. This move signals a potential shift in how local funding is distributed from Westminster.

Increased Mayoral Powers

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Andy Burnham, the Mayor of Greater Manchester, is expected to outline greater freedoms for England's 14 regional and metro mayors on Friday. These plans aim to provide local leaders with more resources for infrastructure, investment, job creation, and growth projects. The intention is to allow those who understand their communities best to make decisions, rather than civil servants in Whitehall, according to Sadiq Khan, the Mayor of London.

Sir Sadiq Khan told The Standard that he had seen "no evidence" of Andy Burnham being anti-London. He added that he was "really excited about the direction of travel from the new Prime Minister" and that the plans were building on progress made by Keir Starmer. Sir Sadiq also expressed hope that Scotland, Wales, and Northern Ireland would receive more devolved powers and resources.

Shift from Treasury Control

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Traditionally, the Treasury has controlled the distribution of local funding. However, regional leaders have criticised this model for not effectively directing money to where it is most needed. The new proposals suggest local leaders would be given a share of income tax revenue, though not new tax-raising powers.

Details of the devolution plans remain unclear, including whether measures will be in place to ensure that less affluent regions outside the capital are not disadvantaged. London contributes approximately £4 in every £10 raised by the government. Mr Burnham has previously faced accusations of being “anti-London” and of intending to direct funds away from the city towards northern areas.