Andy Burnham to give regional mayors share of income tax as rebel Labour MPs slam PM for 'locking out' areas

Andy Burnham is set to give all regional mayors a share of income tax revenue as part of his devolution plans to transfer power out of Westminster.

Critics, including rebel Labour backbenchers, claim the plans risk "locking out" regions without mayoral figures and could lead to areas with weaker economies losing out on funding.

The plans will allow mayors to keep some cash from business rates collected in their areas and gain greater control over services such as housing and transport.

The announcement comes as voters in Greater Manchester took to the polls yesterday, with the now-Prime Minister's replacement due to be announced this afternoon.

Mr Burnham said the move would "make good" on his pledge to "bring power home" to "every postcode in the country", adding: "Under our plans, more of the taxes raised in a community will stay in that community."

In the current climate, regional mayors in England receive most of their funding from central government grants – now expected to retain some revenue from April 2027 and receive a portion of income tax from April 2028.

Tracy Brabin, the Labour mayor of West Yorkshire, told the BBC: "This will enable us to deliver on our ambitious plans including vital improvements to public transport, providing better skills and employment support."

Meanwhile, Shadow Chancellor Sir Mel Stride said: "Unless Burnham is going to launch another tax raid elsewhere, borrow even more, or make cuts to central government grant, there is no new money being announced here."

He said areas with weaker local economies could end up losing out – "the opposite of what Andy Burnham claims he wants to achieve". More details are expected to be announced when Chancellor John Healey delivers his first budget this autumn.

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Zia Yusuf says Andy Burnham's devolution plans should tackle the migrant crisis

Reform UK home affairs spokesman Zia Yusuf said the Prime Minister should "fully devolve the power to stop the housing of illegal migrants in local communities by the Home Office".

It comes as Andy Burnham announced plans to devolve power to regional mayors, via filtering a share of income tax to boost funding and power into communities.

Mr Yusuf added: "Andy Burnham says he wants to devolve power and actually listen to local people.

"If he was listening, he would know that they do not want unvetted illegal migrants dumped in their areas."