The new devolution framework grants mayoral strategic authorities powers over local income tax receipts by 2028 and permits an overnight visitor levy on hotels and B&Bs. While 14 existing mayoral areas will receive enhanced arrangements and 10 new agreements are being finalised, critics fear regions without bespoke deals could fall behind financially. Further direction is expected next month when Prime Minister Andy Burnham publishes his "Rewiring the State" delivery plan. Meanwhile, legal pushback from county councils has suspended the administrative reorganisation necessary to facilitate these powers.
Key points
Regions lacking mayoral representation or bespoke local arrangements risk deepening finan…: Regions lacking mayoral representation or bespoke local arrangements risk deepening financial disparities under the new system.
Administrative progress on devolution remains stalled after Angela Rayner paused unitary…: Administrative progress on devolution remains stalled after Angela Rayner paused unitary restructuring following county council legal challenges.
Next month's publication of the "Rewiring the State" delivery plan will set out the prime…: Next month's publication of the "Rewiring the State" delivery plan will set out the prime minister's wider governance strategy.
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In just two years, there could be dozens of mayors preparing to spend billions of pounds as part of Andy Burnham’s mission to devolve greater powers across England.
Fresh devolution deals could also be in place following negotiations with leaders in Scotland, Wales and possibly Northern Ireland, allowing the prime minister to say at the next election that he has fulfilled a promise to rewire Britain’s political landscape with a view to giving more local control.
This was the message from John Healey’s first budget, which outlined the direction of travel and put in some milestones, including a 2028 commitment to devolve some income tax receipts to mayors of strategic authorities (MSAs). He added the commitment that next year, 20% of business rates revenues will go to mayors.
He told MPs that he was offering mayors 100% of their business rates income by the end of the decade and the ability to tax visitors who stay in hotels and B&Bs in their aream, via a new overnight visitors levy.
It would mean, Healey said: “New powers to the people who…
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