London Mayor to retain portion of income tax and business rates
The Prime Minister confirmed the devolution plan as Chancellor prepares to present the first budget of the new government this autumn.
News London evidence indexOpen analysis ▾
Multiple named officials and independent outlets corroborate the devolution plan, but no primary documents cited.
Higher is stronger
Quotes from officials and clear future timeline give context, while facts and commentary stay distinct.
Higher is stronger
Headline is mildly emphatic but article remains measured and avoids exaggerated claims.
Lower is better
The Mayor of London is set to receive a portion of the income tax and business rates collected within the capital, the Prime Minister confirmed. This decision forms part of a wider devolution strategy intended to shift authority away from Westminster and towards regional leaders across England.
Fiscal shifts and autumn budget
Heathrow third runway gets government go‑ahead, Chancellor says
Chancellor John Healey announced approval for the £33bn project, despite appraisal showing a negative net present value and a consultation that closed on 1 September 2026
Specific details regarding the new fiscal arrangements are expected to be released when Chancellor John Healey presents his first budget in the autumn. While the Mayor will gain access to more local tax revenue, the Government stated that income tax rates will not change as a direct result of these reforms. The Chancellor noted that mayors will benefit from a share of income tax so that local communities see direct benefits when their economies grow, according to reports by The Standard.
Maintaining regional balance
To prevent widening economic gaps, ministers intend to retain an equalisation system. This mechanism will ensure that areas collecting less tax continue to receive financial support. The policy aims to provide local leaders with the resources required to manage public transport, housing, and job creation, as reported by The Standard.
Mayor announces £15.6m fund to improve safety of women and girls on London streets
The money will be managed by City Hall, MOPAC and TfL and is part of a £37m strategy to curb violence against women and girls across the capital.
Under our plans, more of the taxes raised in a community will stay in that community.
Andy Burnham, Prime Minister
Political reaction
The Conservative Party expressed doubt that the tax reforms would assist regional prosperity. Shadow Chancellor Mel Stride suggested the announcement lacked detail and warned that if growing areas receive more funding, areas with weaker economies might lose out, according to The Standard.
The next stage for the policy depends on the upcoming autumn budget, where the Chancellor will outline the specific mechanics of the tax redistribution.
Questions this report answers
+What will the Mayor of London get to keep?
The Mayor of London will retain a portion of income tax and business rates generated in the capital. This means local leaders will have more control over funding for services like public transport, housing, and job creation in London.
+When will we know the full details of the devolution plan?
Full details of the devolution proposals will be provided during Chancellor John Healey’s autumn budget. This is when the specific mechanics of the tax redistribution will be outlined for the first time.
+Will income tax rates change because of this?
Income tax rates will remain unchanged as a direct result of these reforms. The Government has stated that the new arrangements will not affect how much people pay in income tax.
News London Desk
This article was written at the News London news desk from the reporting of the outlets listed below it. Drafting is done by a language model under human editorial supervision — there is no reporter behind this byline, and we would rather say so than invent one.
How stories are produced and scoredWho runs News LondonCorrections
The London Ledger
A considered capital-wide edit delivered each morning.
More Coverage in Council & Politics
Heathrow third runway gets government go‑ahead, Chancellor says
Mayor announces £15.6m fund to improve safety of women and girls on London streets
Mayor Sadiq Khan appeals to reject Heathrow third‑runway plan
