"Because you wouldn't want to have it that places like London and Manchester and Bristol were able to retain more of theirs while other areas that weren't growing at the same rate, were falling behind."
Haigh confirmed that major urban centers will retain additional localized powers alongside revenue control.
"Yes, that's right, and it will have more powers devolved, 16-19 funding, employment support budgets and the ability to tailor their own vocational routes," she said.
Opposition parties criticized the announcement for lacking immediate funding and failing to clarify protections for weaker regional economies.
"Very short on the detail," said Sir Mel Stride, Conservative Shadow Chancellor.
Stride warned that linking regional funding directly to local economic growth could disadvantage struggling areas.
"Could mean those who lose out are precisely those areas which have seen weaker local economies over recent years," he said.
Parliamentary backbenchers and minor parties raised further concerns regarding regional equality and mayoral requirements.
Labour MP Perran Moon warned the model could create a "two-tier system" for regions like Cornwall that lack mayoral structures.
Liberal Democrat spokespeople warned against creating a "postcode lottery."
Reform UK home affairs spokesman Zia Yusuf urged the government to devolve border and housing controls regarding migrants.
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West Yorkshire Mayor Tracy Brabin welcomed the income tax sharing. Tees Valley Mayor Lord Ben Houchen advocated for direct tax cuts and rebate schemes.
