Regional mayor hails Budget 'generational change' as mayors get share of taxes

The regional mayor, Richard Parker, has hailed today's Budget as "a generational change in who holds the purse strings", after the Chancellor gave mayors a share of business rates and promised them a slice of income tax from 2028.

Under the plans, mayors will keep 20 per cent of business rates from April 2027, and business rates will become a fully locally retained tax by the end of the decade, with councils' share rising to at least 70 per cent. All mayors will start receiving an assigned share of income tax from 2028.

"More of the money generated here will stay here"

Mr Parker said: "I firmly support the Chancellor's commitment to fiscal devolution, giving mayors greater powers and financial freedom to shape the future of our regions."

"This is a generational change in who holds the purse strings and who benefits from the wealth our region creates," he said. "It's a really simple idea, but it's huge." He added: "More of the money generated here will stay here, so we can reinvest it in our communities."

He said new Good Growth Funds and greater financial freedom would help the combined authority deliver its Growth Plan: "Building the homes people need, improving transport, bringing life back to our high streets and giving young people the opportunities they deserve. And we can do it without constantly waiting for Whitehall to give us permission."

What the Budget gives mayors

The Treasury's regional fact sheet sets out a long list of measures for local leaders. They include £165 million in 2027-28 for Good Growth Funds in places with a mayor, a £1.5 billion borrowing facility for mayoral strategic authorities that will be running by 2028, and £150 million to help them build the staff and expertise to handle their new powers.

All strategic authorities will also be given the power to introduce an overnight visitor levy under a new Fiscal Devolution Roadmap. Councils will get more help to tackle business rates avoidance, so more of the money can be kept locally.

Help now, too

Mr Parker also welcomed measures to help with the cost of living. "Families across our region are feeling the squeeze, so the £100 energy payment for millions of households this winter with action to bring down energy bills and an increase in the minimum wage and pensions will make a real difference right now," he said.

He praised the business rates relief for high street shops, pubs and small businesses, "at the heart of our communities", and the doubling of funding to tackle rough sleeping. "Nobody should have to sleep on our streets," he said.

What comes next

The detail of how much extra money will flow to the combined authority, and when, will become clearer as the new arrangements are legislated for and put in place. For the regional mayor, though, the direction of travel is clear: more power over money and decisions moving out of Whitehall.