English Mayors Granted Power to Issue Cash Grants from Local Tax Revenues

In the UK Budget, Chancellor John Healey announced that mayors of England’s 14 strategic authorities will receive a share of basic‑rate income tax and business rates collected in their areas. The new devolution allows mayors to use these funds to issue cash grants to individual residents or businesses, a move described by Healey as “the most radical act of devolution in a generation.” Conservative Tees Valley Mayor Ben Houchen confirmed that Treasury officials have assured him he can offer a voluntary tax‑rebate scheme to local residents, while Labour mayors across the country have welcomed the flexibility to direct funds toward local priorities. The policy will take effect from April 2028, with exact allocations to be set at the next government spending review. Mayors who choose to grant cash will have less money available for other services such as housing and transport.