England’s mayors are set to take on a bigger role in managing local finances as part of a major shift in power away from central government, according to plans to be announced next month. Starting in 2028, mayors will be able to keep a share of income tax collected in their areas, allowing them to borrow money for large-scale projects like roads, public transport, and housing. They will also retain business rates from 2027 and may introduce a “tourist tax” to raise extra revenue. This move is seen as a significant step toward giving more control to local leaders and reducing the dominance of national decision-making in London. The IPPR North thinktank, which has worked closely with current Prime Minister Andy Burnham, called the plans “bold and ambitious.” They recommended that mayors be allowed to keep 5% of income tax revenue, which would shift an additional £3.8 billion annually away from central government and more than double the amount of money mayors can control. However, the thinktank also emphasized the need for strong oversight to ensure that mayors use their new powers responsibly and avoid poor decisions that could harm public trust. To ensure accountability, new regional audit offices will be set up to monitor spending, and each region will have a senior accounting officer, similar to those in central government departments. Larger mayoral areas, such as London, Greater Manchester, and the West Midlands, will be overseen by strengthened accountability committees to prevent misuse of funds, corruption, and undue influence from lobbyists. Burnham, who previously served as Greater Manchester’s mayor, has made decentralizing power a key priority. He has established a central hub for devolution in Manchester, known as No 10 North. While the proposals represent the most significant shift of power to English regions in modern times, concerns have been raised about whether newer and smaller local authorities are ready to handle these expanded responsibilities. These include areas like employment support, transport, housing, and cultural investment. Some mayoral authorities are already well-established, while others, such as those in Hull, East Yorkshire, and Greater Lincolnshire, were only created last year. Several other mayoral areas, covering large parts of the south coast and north-west England, are still being formed. A white paper detailing the timeline for transferring financial powers to English regions is expected to be released with the autumn budget on 28 October. Aditi Sriram, the lead author of the IPPR North report, said the country is at a “defining moment” in how it is governed, and that accountability is crucial for the success of devolution. She noted that mayors have long been limited in their ability to drive local growth because they rely on central government for funding and approval. Jim O’Neill, a former Treasury minister who advised Burnham before he became prime minister, acknowledged that some critics may dismiss devolution as ineffective, but he argued that giving mayors in the most populated areas greater power—provided they have the ability to manage it responsibly and the desire to be accountable—could lead to meaningful progress, as seen in Greater Manchester.