Andy Burnham unveils devolution plan to give mayors income tax share

Westminster hands over power

The move is part of his push to transfer more decision-making power away from Westminster and towards local governments.

Under the proposals, English strategic authorities would be able to retain a share of the business rates collected in their areas from April 2027.

They would also receive greater control over key services, including housing, transport and skills.

The government has not yet decided the exact portion of taxes mayors will receive, with more detail expected when Chancellor John Healey delivers his first budget in the autumn.

The Guardian described the shake-up as the biggest transfer of power from Westminster in a generation.

What the devolution plan means

Burnham said the move would "make good" on his pledge to "bring power home" to "every postcode in the country".

Speaking to BBC Radio 4's Today programme, First Secretary of State Louise Haigh said areas would not need a mayor to benefit, because the powers would sit with new strategic authorities across England.

"Under our plans, more of the taxes raised in a community will stay in that community."

The announcement comes as Greater Manchester prepares to name Burnham's successor following the region's Greater Manchester mayoral election.

Opposition parties said the plans lacked detail and warned that areas with weaker economies could lose out, a concern for anyone weighing what his government means for household budgets.

Separate proposals are being developed for Scotland, Wales and Northern Ireland.