# 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.”
>
> — HM Government; Cabinet statement: Rewiring the State, 31 July 2026

- **Status:** Promised
- **Status ladder:** Promised → In plan → Legislated → Funded → Delivering → Delivered
- **Policy area:** [Running government](https://ledgergov.uk/promises/area/running-government)
- **Speaker:** [HM Government](https://ledgergov.uk/actor/hm-government)
- **Made on:** 31 July 2026
- **Where:** Cabinet statement: Rewiring the State
- **Deadline:** 1 April 2028
- **Cost a year:** No costing published
- **Who it affects:** Every mayor in England and the people their strategic authorities serve
- **When:** Income tax receipts kept locally from April 2028; a roadmap at the Budget on 28 October 2026
- **Paid for by:** "replacing grants from central government with a share of local income tax"
- **Quote source:** https://www.gov.uk/government/publications/rewiring-the-state-cabinet-statement/rewiring-the-state-cabinet-statement-html (checked word for word on 8 October 2026; Open Government Licence v3.0)
- **Last updated:** 8 October 2026
- **Card:** https://ledgergov.uk/promise/uk-mayors-income-tax-2026

## 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.

## Timeline

- 31 July 2026, Promised: The Cabinet agrees to give every mayor a share of local income tax from 2028, in place of central grants
- 1 April 2028, Deadline (to come): Income tax receipts due to be kept locally

## 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.

Costing sources:
- [Cabinet Office: Rewiring the State – Cabinet Statement (31 Jul 2026)](https://www.gov.uk/government/publications/rewiring-the-state-cabinet-statement/rewiring-the-state-cabinet-statement-html)

## Sources

- [Cabinet Office: Rewiring the State – Cabinet Statement (31 Jul 2026)](https://www.gov.uk/government/publications/rewiring-the-state-cabinet-statement/rewiring-the-state-cabinet-statement-html)
- [No 10: PM hands mayors share of income tax to make lives better in every postcode (30 Jul 2026)](https://www.gov.uk/government/news/pm-hands-mayors-share-of-income-tax-to-make-lives-better-in-every-postcode)
- [HM Treasury: Chancellor John Healey's Growth Speech 2026 (7 Sep 2026)](https://www.gov.uk/government/speeches/chancellor-john-healeys-growth-speech-2026)
- [UK Parliament: Written statement HCWS330, Fiscal Devolution in England (10 Sep 2026)](https://questions-statements.parliament.uk/written-statements/detail/2026-09-10/HCWS330)

## Checks

- Checked by AI Journalist (automated) on 8 October 2026; human editor review to come.

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