Mayors to keep a share of income tax and could get more decision-making power over planning
Leading organisations in the housing sector have welcome a new push to move power and decision-making out of Westminster.
On Friday, new prime minister Andy Burnham announced that regional mayors would keep a share of income tax and business rates revenues to give them more influence over investment.
Meanwhile, areas without a mayor will be supported to establish strategic authorities.
“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,” said Burnham.
“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.”
The proposals, which will be implemented from next Spring, beginning with greater business rates retention, will eventually give local leaders a share of income tax for the first time.
Further details on the policy are to be set out at the Budget, with the reforms to be delivered through the new No10 North operation.
The government said local leaders would ultimately gain the power to bring rail and buses services under public control, build more homes, and take a lead on large local transport schemes, among other things.
According to Number 10, planned reforms will “remove barriers that prevent locally led transport projects from going ahead, handing over new planning powers for mayors and give local areas greater flexibility over how funding is spent”.
It described a new “local first” principle, under which ministers will be expected to justify why powers should remain in Whitehall rather than being devolved.
Tom Arnold, policy manager for regional engagement and devolution at CIH, said regional devolution was :”absolutely essential if we are to build the homes and infrastructure we need”, describing England as “one of the most centralised advanced economies in the world”.
“Today’s announcement that mayoral strategic authorities will receive a share of income tax is a crucial step in the right direction,” he said.
“Alongside the proposals announced today to give mayors stronger planning powers and more devolved funding, there is huge potential here in giving local leaders more control over the delivery of homes and infrastructure, and aligning them with local priorities.”
However, he stressed the importance that fiscal devolution “does not disadvantage any area”.
Stephen Teagle, chief executive of partnerships and regeneration, at housebuilder Vistry Group, said that from a housing deliver perspective “any increase in the power of Mayors to take a more active and strategic role in unlocking stalled development sites, funding enabling infrastructure such as transport links, leading on major regeneration projects, and being able to deploy a more intervention approach to planning is to be welcomed”.
He also welcomed the ability for mayors to play a stronger role in shaping skills education.
“While we await the precise details in the budget around the fiscal freedoms and ability to retain the proceeds of growth, we would urge both mayors and the government to consider how they can be used to play a more commissioning role in getting homes built and delivering the government’s wider housing agenda at pace,” he said.
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