Prime Minister Andy Burnham will give all mayors of English city regions a share of income tax revenue for the first time, alongside retained business rates and greater control over housing, transport and skills, as part of his devolution drive

Mayors are expected to start retaining business rates revenue from April 2027 and receive a share of income tax from April 2028, though the exact portion won’t be confirmed until Chancellor John Healey’s autumn budget

Opposition parties and some Labour MPs raised concerns, warning the plans could create a “postcode lottery” leaving areas with weaker economies or without mayors worse off

Mayors will also get a fast-track route for major transport projects, with the approval threshold for projects rising from £200m to £500m

The UK currently collects just 5.8% of national taxes at a local level, the lowest in the G7, compared with 20.4% in France and 45.7% in the US