The UK Treasury has drawn up plans to allow English mayors to keep a portion of regional income tax revenues, in a move to stimulate local economic growth.
The proposal follows Andy Burnham's election as Labour Party leader.
>>> Ford F-150 Lightning Nearly Sold Out, Dealers Offer Up to $20,000 Off
The fiscal devolution strategy would allocate billions of pounds from national tax funds directly to local leaders, focusing on England's seven most senior regional mayoralties.
Six of these are currently held by Labour.
The tax-sharing initiative would cover major metropolitan areas including London, the West Midlands, Liverpool, the North East, South Yorkshire, and West Yorkshire.
The Greater Manchester seat remains vacant.
Burnham's Vision for Regional Governance
In his first address after being elected Labour leader on Friday, Andy Burnham outlined his primary vision for regional governance reform.
"Take power back from Westminster and Whitehall and give it to the place where you live," he said.
>>> Kia e-Niro Tops EV Battery Health Study After 62,000 Miles
Burnham praised recent regional transit initiatives, specifically pointing to Steve Rotheram, Mayor of the Liverpool City Region, for his local railway control strategy.
Representatives close to the Labour leader noted that devolved funding correlates with economic prosperity, citing international OECD standards in federal nations like Switzerland, Germany, Canada, and the United States.
Research published by the Institute for Public Policy Research (IPPR) warns that failing to expand mayoral authorities swiftly risks dividing the country's economic opportunities based on geographical boundaries.
"If mayors take on the risk to deliver projects, they can benefit from the upside when there are higher receipts," said Aditi Sriram, IPPR economist.
Sriram added that policy experts maintain a strong intention to prevent regional isolation in areas lacking mayoral authority.
>>> Ford, Google, BlackRock Join Forces to Tackle Skilled Trades Shortage
Chancellor Rachel Reeves previously signaled the government's direction during a Tuesday address at Mansion House, describing "a path to a permanent transfer of power and resources away from central government."
