Families could be handed tax money back under Andy Burnham rule change | Personal Finance | Finance

Families could see some of their tax money handed back under Andy Burnham’s mooted plans. The Prime Minister is expected to reveal proposals to devolve more power and tax money to England’s regional mayors.

Mayors would keep a share of local income tax, rather than sending it all to the Treasury, as well as having greater control over business rates. This will give them more power over how money is spent locally in an effort to boost economic growth.

The Government anticipates that local authorities will use the cash to fund infrastructure like roads and transport, as well as housing and other public services. But some mayors are looking to instead give money back to locals.

Ben Houchen, the Tory mayor of Tees Valley, said that if the devolution takes place, he wants to create a tax rebate system. He told The Times: “Every mayor is backing fiscal devolution because they want more money to spend in their area.

“However, if the Tees Valley is handed a slice of local income tax and business rates generated locally, I’ll create a new rebate scheme to put money back into people’s pockets and let families keep more of the money they earn.

“Fiscal devolution must be about giving places like Teesside the power to do things differently, back growth and reward the people that drive our local economy instead of squeezing every last penny out of them.”

Two Reform mayors, Luke Campbell in Hull and East Yorkshire and Andrea Jenkyns in Greater Lincolnshire, are believed to be interested in similar ideas.

As of yet, it is unclear whether mayors would have enough money left after paying for local services to give local residents any tax rebate.

The Government has not proposed tax rebates as part of its devolution plans, which is one of the central pillars of Andy Burnham’s time in Number 10.