The Prime Minister will today launch the biggest transfer of power from Westminster in a generation, giving communities greater control over the decisions that shape jobs, transport, housing and public services in their area.
- Biggest transfer of power, funding and responsibility from Westminster in a generation
- Mayors to keep a share of income tax and business rates revenues so communities directly benefit when their economy grows, with new powers for communities still on the road to devolution
- Taking a tried and tested approach nationwide - delivering better transport, more homes and skills training matched to local jobs
The Prime Minister will today launch the biggest transfer of power from Westminster in a generation, giving communities greater control over the decisions that shape jobs, transport, housing and public services in their area.
As part of the largest package of financial powers ever offered to English mayors, mayors will receive a share of income tax revenues for the first time.
This means when places create jobs and grow their economies, they will now keep more of the rewards - giving local leaders new powers to invest in what matters most locally.
The government wants every community to benefit from stronger local decision-making. Areas without a mayor will still be supported to establish strategic authorities and gain greater control over local priorities.
In his second week in office, the Prime Minister will tell his Cabinet that it is time to launch a new era of devolution - taking power and decision-making out of SW1 and putting it closer to people's lives.
Prime Minister Andy Burnham said:
I said we'd take power out of Westminster and carry it into every postcode in the country. Today, we make good on that promise.
Under our plans, more of the taxes raised in a community will stay in that community. Soon, every local leader will have the power and resources to improve public transport, build homes and create jobs.
I know what it's like to be ignored by politicians in Westminster. I'm not going to make that same mistake now I'm PM.
The whole of government will now pull together behind the people and places that desperately need our support. This is how we'll bring back hope and bring power home to you.
The plans will end the Whitehall-first culture that has held back local areas for decades, forcing departments to justify why powers should stay in Westminster rather than be handed to local leaders.
By shifting power, funding and decision-making closer to people, the changes will give every part of the country the tools to create strong local economies, improve public services and shape its own future.
Chancellor of the Exchequer, John Healey MP said:
The people who best understand what skills employers want, what transport an area needs and where investment can make the biggest difference are those who live there.
For the first time we're giving Mayors a share of income tax so communities directly benefit when their economy grows - passing power out of Westminster and driving growth in every postcode.
This is the way we start to build new hope and advance the working people of this country.
From next spring, mayors will begin retaining a greater share of locally generated revenues, starting with business rates.
