Andy Burnham plots huge tax change – not an income tax hike | Politics | News
Andy Burnham is set to introduce a major tax change as part of devolution plans that will be set out in days – and it’s not an income tax hike. The new Prime Minister, who replaced Sir Keir Starmer in Number 10 on Monday (July 20), has made decentralising power and funding away from Westminster and into the hands of regional mayors and local authorities a major pillar of his agenda.
Mr Burnham signalled his commitment to the new approach by opening Number 10 North on Friday (July 24), a newly-opened base in Manchester he is planning to work from one day each week. The Labour leader came to national prominence as the long-time mayor of Greater Manchester, and called the launch of the new office the “best day of my life”. He is now expected to go a step further in his drive for dentralisation, giving mayors mayors a share of income tax revenue to put back into their cities as part of plans expected to be revealed next Friday (July 31), The Times reports.
Mayors will be handed significant new spending powers in a bid to help improve local investment, as well as infrastructure and other growth projects, as per the outlet.
Burnham is reportedly set to lay out greater freedoms for Englandโs 14 regional and metro mayors, a move he says will deliver on his commitment to bring โgood growth in every postcodeโ.
According to the newspaper he is also expected to reveal the action he plans to take to address various other longer-term national issues.
This will include plans for the thorny issue of social care, and defence, which has been the subject of intense rows over funding that brought increased pressure on Sir Keir during the dying days of his premiership.
He’s also expected to set to plans to address the crisis surrounding the high number of young people classed as not in education, employment or training (NEETS).
It comes after Burnham made a number of headline-grabbing announcements in his first week in charge.
On Tuesday, the PM announced that VAT on electricity bills will be removed from October 1, a move aimed to address the impact of price spikes that have hit Brits hard.
The following day it was announced that bus fares in England (outside London) would be capped at ยฃ2 in 2027.
Then on Thursday he announced that pubs, clubs and live music venues will receive a 20% cut to their business rates bills from April 2027, which the Government estimates will save a typical pub ยฃ1,100 next year.