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 due to be unveiled in a few days, and it’s not an income tax increase. The new Prime Minister, who replaced Sir Keir Starmer in Number 10 on Monday 20 July, has made centralizing power and shifting finance away from Westminster and into the hands of regional mayors and local authorities a key plank of his agenda.
Mr Burnham signaled his commitment to the new approach by opening Number 10 North, a newly opened base in Manchester, on Friday (July 24) where he plans to work one day a week. The Labor leader rose to national prominence as the long-serving mayor of Greater Manchester and described the opening of the new office as “the best day of my life”. It is now expected to go a step further in its push for decentralization by giving mayors a share of income tax revenue to pass back to their cities as part of plans expected to be unveiled next Friday (July 31). Times reports.
Mayors will be given significant new spending powers to help improve infrastructure and other growth projects, as well as local investment.
Burnham will reportedly offer greater freedom to England’s 14 regional and metropolitan mayors, saying the move would deliver on his commitment to deliver “good growth in every postcode”.
He is also expected to announce action he plans to take to address other long-term national issues, according to the newspaper.
This will include plans for thorny issues such as social care and defence, which have been the subject of intense debates over funding that have put increasing pressure on Sir Keir in the final days of his premiership.
It is also expected to make plans to address the crisis of large numbers of young people classed as not in education, employment or training (NEETS).
It comes after Burnham made a series of headline-grabbing announcements in his first week in office.
On Tuesday, the Prime Minister announced that VAT on electricity bills will be scrapped from October 1, in a move aimed at countering the impact of price rises that have hit Brits hard.
The following day, it was announced that bus fares in England (outside London) would be capped at £2 by 2027.
It then announced on Thursday that pubs, clubs and live music venues will receive a 20% discount on their business rates bills from April 2027; The government estimates this will save the typical pub £1,100 next year.
