UPDATE: UK PM Andy Burnham says aims to empower regions in England

Prime Minister Andy Burnham has announced sweeping devolution plans to allow regional mayors to retain a share of locally collected taxes according to reporting from across the political press. The policy forms part of a wider push to shift power away from Westminster and Whitehall.

Speaking at a community centre in Sheffield alongside South Yorkshire Mayor Oliver Coppard, the prime minister described the proposals as the largest transfer of authority away from central government in modern times. He argued that the reforms would give historically overlooked communities the financial resources needed to drive local investment.

"This is a day when all of the forgotten places across Britain, and there are many of them, this is a day when they can all feel heard today, and they can feel empowered today, and they can know from today that they'll have more in their hands to go out there and do more to lift their places up, and that's what this is all about."

Andy Burnham, Prime Minister, via Alliance News

Under the initial rollout, regional leaders in areas such as Greater Manchester, the Liverpool City Region, Cambridgeshire and Peterborough, and South Yorkshire will begin retaining a portion of business rates as early as next spring. Plans regarding income tax retention will be detailed further when Chancellor John Healey delivers his budget on the autumn budget according to official government announcements. Ministers have confirmed that billpayers' overall income tax rates will not change as a direct result of the changes, and an equalisation mechanism will remain in place to protect regions where lower tax revenues are generated.

Housing Secretary Angela Rayner backed the proposals, describing them as a vital step to end what she termed a begging-bowl culture in local government reported via Mirror coverage. First Secretary of State Louise Haigh speaking to BBC Radio 4's Today programme added that strategic authorities would also be established in parts of England without elected mayors to ensure those regions do not miss out on devolved powers over transport, skills, and employment support.

However, the proposals have triggered immediate pushback from opposition figures. Conservative Tees Valley mayor Ben Houchen criticised the administration on the social media platform X after government ministers ruled out allowing mayors to use the retained funds to issue local tax rebates reported by Alliance News.

"So devolution means getting people's taxes to spend but not being allowed to give it back to them. Last time I spoke to the PM, devolution was about Whitehall not dictating what areas can or can't do. Doesn't sound much like devolution to me? Just an excuse for a tax grab."

Ben Houchen, Tees Valley Mayor, via Alliance News

First Secretary of State Louise Haigh speaking to Times Radio rejected the idea that local leaders could act as mini-chancellors, stating that current HM Revenue and Customs infrastructure cannot support local tax-cutting mechanisms and that the funds are strictly intended for public service reinvestment and regional growth according to Mirror reporting. Prime Minister Andy Burnham defended the strategy as an explicit break from past economic approaches, telling journalists in Sheffield that the country must tackle lagging G7 investment figures through a dedicated growth agenda rather than a continuation of austerity.

Concurrently, the political spotlight remained fixed on Greater Manchester, where returning officers at the Co-op Live arena managed the counting process for Britain's largest-ever electoral by-election reported by Mirror journalists. The vote was triggered after Mr Burnham vacated his role as regional mayor following his election to Parliament as previously covered in our politics desk.

Labour candidate Bev Craig entered the count as the favourite according to local party sources, though turnout dropped significantly compared with previous mayoral ballots. Political researchers from the non-profit agency More In Common attributed the lower engagement to the timing at the start of school summer holidays noted in Mirror reporting. Because no candidate was projected to clear the mandatory threshold on first preferences, election officials prepared for a supplementary vote second count matching the top two contenders according to Greater Manchester Elects.

What to watch next

• The publication of a comprehensive government white paper detailing the exact proportions of tax revenue regional leaders will retain according to Alliance News.
• Further legislative announcements and implementation timelines surrounding regional taxation to be delivered during Chancellor John Healey's first budget scheduled for the autumn reported via Mirror coverage.
• The final declaration of the Greater Manchester mayoral by-election winner following the supplementary vote distribution noted by Mirror live reporting.
• Potential local authority tourist tax schemes slated for possible rollout from March 2028 according to cabinet statements cited by Alliance News.