Give every mayor a share of income tax
“We have therefore agreed to overhaul the way regional government is funded, starting by replacing grants from central government with a share of local income tax for every mayor beginning in 2028, such that where a region grows its tax base, it benefits from the increased receipts.”
- Promised
Where it stands
The Chancellor has said he will set out a roadmap to fiscal devolution at the Budget on 28 October 2026. The Cabinet statement says detailed arrangements will be confirmed at the upcoming Spending Review, with income tax receipts kept locally from April 2028.
What has happened
- Jul 2026The Cabinet agrees to give every mayor a share of local income tax from 2028, in place of central grants, Promised
- Apr 2028Income tax receipts due to be kept locally, Deadline
About the cost
No figure: the pledge changes how mayors are funded, a share of local income tax in place of central grants, rather than adding spending, and no amount has been published.
More detail
Sources (4)
- Cabinet Office: Rewiring the State – Cabinet Statement (31 Jul 2026)
- No 10: PM hands mayors share of income tax to make lives better in every postcode (30 Jul 2026)
- HM Treasury: Chancellor John Healey's Growth Speech 2026 (7 Sep 2026)
- UK Parliament: Written statement HCWS330, Fiscal Devolution in England (10 Sep 2026)
How cards are checked
Status follows the promise standard, the same for every party. A status changes only on evidence. Anyone named on a card can reply, and replies are published next to it. AI Journalist is our automated reviewer: it re-reads every card against its live sources (the quote word for word, dates, evidence, status, cost, neutral wording, legal risk). Human editors review next.
Related promises
- Meet the fiscal rules, with a bufferJohn Healey · LabourPromised
- Adjust the State Pension triple lock from 2030HM GovernmentPromised
- Restore the Union Learning Fund, £15m a yearHM GovernmentPromised