Andy Burnham is set to transfer income tax powers to Labour mayors as part of his initial agenda upon becoming Prime Minister. The Treasury is reportedly developing plans to allow English mayors to share in income tax revenue generated within their regions, a move intended to incentivize local economic growth.
This policy, which would affect the seven most senior mayoralties including London, the West Midlands, Liverpool, the North East, South Yorkshire, West Yorkshire, and Greater Manchester, is understood to have been accelerated since Burnham's election as Labour leader. He has consistently advocated for greater fiscal devolution, empowering mayors to raise taxes through measures such as tourist levies and local transport controls.
Burnham, who will officially transition to Prime Minister on Monday following Sir Keir Starmer's resignation, has pledged to "take power back from Westminster and Whitehall and give it to the place where you live." He is expected to use his first address from Downing Street to outline plans aimed at providing relief on the cost of living and emphasizing his core theme of devolving power from central government.
The incoming Prime Minister is also finalizing his cabinet appointments. While speculation has surrounded the role of Chancellor, with allies reportedly favoring Ed Miliband and reports suggesting Shabana Mahmood for the position, Burnham stated that ministerial appointments would be announced on Monday. He described the current moment as Labour's "last chance to change" and promised to "bring back hope."
Burnham's transition to Downing Street follows a period of intense political activity. He was filmed dancing to the 1980s Manchester band New Order's song "True Faith" after his confirmation as Labour leader. He is expected to visit his "No 10 North" office in Manchester during his first week in power, signaling his commitment to a decentralized approach to governance. The new administration aims to deliver tangible changes that will make people's lives easier.