Andy Burnham's plans for Sheffield as part of new South Yorkshire Government deal
“Soon, every local leader will have the power and resources to improve public transport, build homes and create jobs”
Prime Minister Andy Burnham has revealed major changes in the nation’s power structure which could revolutionise South Yorkshire.
Following continued discussions around devolution, the new PM has announced that metro mayors in England will soon be awarded a share of local income tax revenues in a ground-breaking change that is set to offer more power to local communities.
It comes as Mr Burnham - who previously served as Mayor of Greater Manchester - has spoken strongly about moving power out of Westminster and giving each of the nation’s regions more power to shape how their services work.
The PM hopes these changes in Government are set to help local communities deal with the matters that matter most to them.
Announcing the latest changes, he said: "I said we'd take power out of Westminster and carry it into every postcode in the country. Today, we make good on that promise.
"Under our plans, more of the taxes raised in a community will stay in that community. Soon, every local leader will have the power and resources to improve public transport, build homes and create jobs.
"I know what it's like to be ignored by politicians in Westminster. I'm not going to make that same mistake now I'm PM.
"The whole of government will now pull together behind the people and places that desperately need our support. This is how we'll bring back hope and bring power home to you."
In South Yorkshire, Mayor Oliver Coppard has been working to bring transport services back under public control.
In 2024, Supertram was taken over by his office and the same is expected to happen with the county’s buses next year.
“It is a good step forward and an important step forward, not just for South Yorkshire, but for the country,” South Yorkshire Mayor Oliver Coppard said of the latest announcement.
“By allowing mayors to have a long-term steady funding stream then that allows us to plan for long-term, big projects, we can unlock greater and greater growth in South Yorkshire.
“So it’s a really important step forward, we’ve got to see the detail of course but I’m pleased that this Prime Minister and his government are quite quickly hitting the ground running to unlock this huge potential.”
He describes tax money being paid back into local regions as a “self-fulfilling prophecy” - allowing successes to lead to more successes.
And while he said the changes aren’t going to change the timeline of the upcoming South Yorkshire People’s Network public transport plans, it would allow greater long-term planning.
“What it will do is allow us to make sure that investment is going in over time to make that network bigger and better,” he continued.
“My frustration is that at the moment we are locked into short-term funding cycles that mean we can’t plan for the long-term.
“This settlement would allow us to plan for the long-term and that can be really significant when you’re thinking about long-term projects like transport.”
It is understood that projects like these will now be supported by the recently-open Number 10 North, which will work with local leaders to cut red-tape on issues like planning, regeneration and transport.
A White Paper is set to be published alongside the autumn Budget that will set out the timetable to implement financial reforms that could see local authorities retain revenue generated from business rates by next spring.
Further details on how income tax will be awarded to local authorities is set to be announced later.
It has been said that it will not change the amount of tax people pay, rather is focused on how it is allocated, with hopes that it will result success of local economies benefits the region.
The Government have said that they hope local areas will move away from dependence on Whitehall grants and towards funding that rewards local growth.
Chancellor of the Exchequer, John Healey - who is also MP for Rawmarsh and Conisbrough - said: “The people who best understand what skills employers want, what transport an area needs and where investment can make the biggest difference are those who live there.
“For the first time we’re giving mayors a share of income tax so communities directly benefit when their economy grows - passing power out of Westminster and driving growth in every postcode.
“This is the way we start to build new hope and advance the working people of this country.”
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