The UK will allow regions of England to retain portions of locally collected
income and business taxes, the government said. Chancellor John Healey called
the package in the budget the most radical devolution in decades. Under the
plan, from next year English mayors may retain 20% of business rate revenue;
from 2028 they will receive a share of local income tax and gain powers to levy
an overnight visitor accommodation surcharge. The reforms are intended to shift
fiscal authority from London to city regions, a policy championed by former
Greater Manchester mayor Andy Burnham.
