Plans to allow regional mayors in the United Kingdom to retain a share of income tax have drawn criticism from within the Labour Party and from opposition figures, who argue the proposals could create a two-tier system and disadvantage poorer areas.
Andy Burnham, the mayor of Greater Manchester, has been a proponent of devolving fiscal powers, including a portion of income tax, to local leaders. Supporters like Tracy Brabin, the Labour mayor for West Yorkshire, and Richard Parker, the Labour mayor for the West Midlands, have lauded the potential for these changes to allow regions to see the tangible benefits of local taxation and to foster significant regional change.
However, some within the Labour Party have voiced reservations. Sean Woodcock, the Labour MP for Banbury, expressed support for the principle but emphasized the continued need for central government redistribution to aid less affluent areas. "If you want to close the gap between the areas that are affluent with the ones that are less so, the ones that are less so need more support, more help, and that means redistribution, frankly, from the centre," Woodcock stated. He added that the current proposals do not include such redistribution and may lead to minimal benefits for many areas, potentially due to the elimination of certain grants.
Perran Moon, the MP for Camborne and Redruth, described the plans as potentially "discriminatory" and capable of establishing a "two-tier system." He argued that areas without mayors or combined authorities might be excluded from devolved powers available to others, and called for the government to provide the same funding and powers without the requirement of mayoral structures.
Political opposition has also weighed in. Conservative shadow chancellor Sir Mel Stride criticized the announcement for being "very short on the detail" and lacking any new funding commitments, suggesting that areas with weaker local economies could be left worse off. The Liberal Democrats warned of the plans risking a "postcode lottery" that could leave millions in rural areas "short-changed and underfunded."
Zia Yusuf, Reform UK's home affairs spokesman, shifted the focus, calling for the prime minister to fully devolve the power to local authorities to manage the housing of illegal migrants, a concern typically handled by the Home Office.