Burnham hands England’s mayors share of income tax to make lives better ‘in every postcode’

The Prime Minister has launched ‘the biggest transfer of power from Westminster in a generation’, giving England’s communities greater control over the decisions that shape jobs, transport, housing and public services in their area

  • Biggest transfer of power, funding and responsibility from Westminster in a generation
  • Mayors to keep a share of income tax and business rates revenues so communities directly benefit when their economy grows, with new powers for communities still on the road to devolution
  • Taking a tried and tested approach nationwide – delivering better transport, more homes and skills training matched to local jobs

The Prime Minister yesterday launched ‘the biggest transfer of power from Westminster in a generation’, giving communities greater control over the decisions that shape jobs, transport, housing and public services in their area.

As part of the largest package of financial powers ever offered to English mayors, mayors will receive a share of income tax revenues for the first time.

This means when places create jobs and grow their economies, they will now keep more of the rewards – giving local leaders new powers to invest in what matters most locally.

The government wants every community to benefit from stronger local decision-making. Areas without a mayor will still be supported to establish strategic authorities and gain greater control over local priorities.

In his second week in office, the Prime Minister told his Cabinet that it is time to launch a new era of devolution – taking power and decision-making out of SW1 and putting it closer to people’s lives.

Prime Minister Andy Burnham said: “I said we’d take power out of Westminster and carry it into every postcode in the country. Today, we make good on that promise.

“Under our plans, more of the taxes raised in a community will stay in that community. Soon, every local leader will have the power and resources to improve public transport, build homes and create jobs.

“I know what it’s like to be ignored by politicians in Westminster. I’m not going to make that same mistake now I’m PM.

“The whole of government will now pull together behind the people and places that desperately need our support. This is how we’ll bring back hope and bring power home to you.”

The plans will end the Whitehall-first culture that has held back local areas for decades, forcing departments to justify why powers should stay in Westminster rather than be handed to local leaders.

By shifting power, funding and decision-making closer to people, the changes will give every part of the country the tools to create strong local economies, improve public services and shape its own future.

Chancellor of the Exchequer, John Healey MP said: “The people who best understand what skills employers want, what transport an area needs and where investment can make the biggest difference are those who live there.

“For the first time we’re giving Mayors a share of income tax so communities directly benefit when their economy grows – passing power out of Westminster and driving growth in every postcode. 

“This is the way we start to build new hope and advance the working people of this country.”

From next spring, mayors will begin retaining a greater share of locally generated revenues, starting with business rates. Further details on this and on income tax retention will be set out in a roadmap at the Budget and will be underpinned by the government’s firm commitment to fiscal discipline.

Over time, local areas will move away from dependence on Whitehall grants and towards funding that rewards local growth.

The ambition is to extend the benefits of devolution across the whole UK, working with devolved governments and local leaders to give communities more control over their future.

Secretary of State for Housing, Communities and Local Government Angela Rayner said:  “This is the first step in our plan to rewire this country and build a better future, where power is no longer hoarded in Westminster but is put back in the hands of local people – where it belongs.

“Our devolution revolution is about bringing an end to the begging-bowl culture of the past, and instead making sure our local leaders have the tools they need to drive the change that communities have been crying out for.

“We need every region to be firing on all cylinders if we want good growth in every postcode, and we will do everything in our power to make that a reality.”

The reforms will be driven by a strengthened No10 North operation, working with mayors, local leaders and other partners to remove barriers to growth, accelerate delivery and ensure government is better connected to communities across the country.

Local leaders will gain greater control over the services that shape people’s lives, including housing, transport, skills, employment support and public services.

This includes powers to:

  • Bring rail and bus services under greater local control, helping introduce integrated ticketing and more reliable services.
  • Build more homes where they’re needed and unlock stalled development sites by giving local leaders stronger planning and regeneration powers and more devolved funding.
  • Give more control over large local transport schemes, trams and metros to Mayors by removing and streamlining Whitehall.
  • Give mayors control over 16-19 funding and employment support, so young people can train for the jobs local employers need and people out of work can get tailored support back into employment.
  • Back local industries and innovative businesses, and attract investment, creating more well-paid jobs.
  • Where power is devolved, Whitehall resource will follow, giving devolved leaders the resources they need to drive change closer to home

Reforms will remove barriers that prevent locally led transport projects from going ahead, handing over new planning powers for mayors and give local areas greater flexibility over how funding is spent.

Under a new “local first” principle, ministers will be expected to justify why powers should remain in Whitehall rather than being devolved.

The United Kingdom has invested less in its future than any other G7 country over the past three decades. Giving local leaders greater control over funding and investment decisions will help unlock opportunities that have too often been overlooked by a Whitehall-led approach.

The Prime Minister believes the country’s towns, cities and communities can drive far more growth and opportunity if they are given the tools to do so.

Where local leaders have been trusted with greater responsibility, they have already delivered results:

  • In West Yorkshire, a Housing Investment Fund of up to £334 million is helping unlock land for development and bring forward stalled sites, supporting the delivery of thousands of new homes.
  • In the Liverpool City Region, local leaders are transforming transport through the rollout of Tap and Go ticketing on Merseyrail, bringing the bus network into local control later this year and taking rail services back into public ownership by 2028.
  • In the North East, 65,000 residents have been supported to gain qualifications, opening up new employment opportunities in sectors including construction and childcare.

The UK cannot rely on success in a small number of places alone. By giving more communities the tools to succeed, these reforms will help spread opportunity more widely, raise living standards and ensure more people feel the benefits of economic success in their everyday lives.

As powers move out of Westminster, the Civil Service will become smaller and more strategic, focusing on the responsibilities that are best exercised at a national level.

Burnham: ‘From today Britain will value the hard hat as much as the graduation cap’

Under the Prime Minister’s fundamental changes to the education system, 14-year-olds in England will be able to get early access to technical education, skills training, work experience and connections with employers

  • Under the Prime Minister’s fundamental changes to the education system, 14-year-olds will be able to get early access to technical education, skills training, work experience and connections with employers
  • Prime Minister to say to students: ‘whether you choose construction, coding or classics, you’ll get the skills you need and be given the respect you deserve’
  • Schools, colleges, mayors, local leaders and employers will work together to create clear routes into good, skilled jobs in their area
  • Ofsted to change the way they measure and inspect schools, ensuring they recognise the quality of technical education and the support aimed at preparing young people for work
  • The changes follow Alan Milburn’s warning that Britain risks leaving behind a “lost generation” with over one million young people now not in education, employment or training

The Prime Minister will unveil a fundamental change to England’s education system today [Tuesday 28 July], with the launch of new prestigious technical educational routes. The new pathways will provide 14-year-olds with valuable early access to technical skills, work experience and connections with local employers.

The Prime Minister is determined to put technical education on an equal footing with the traditional academic path and to ensure there are ‘no dead ends’ for young people coming out of the education system. 

This means providing high-quality technical education routes that are valued and respected by students, parents and employers.  In a message directly to students, he will say ‘whether you choose construction, coding or classics, you’ll get the skills you need and be given the respect you deserve’. 

From age 14 (Year 10), students will have the chance to combine core academic subjects – including English, maths and science – with a high-quality technical education that’s linked to the jobs available in their area. They will be able to spend time with employers and gain real-world experience.  

Building on successful local initiatives, such as the MBacc in Greater Manchester, the new technical routes will mean young people can develop the technical knowledge and skills needed to progress in areas like engineering, healthcare and digital technology, skilling them up with the specific knowledge and capabilities that local employers need. 

Regional mayors, local leaders, schools, colleges and employers will work together to shape the new technical education pathways, which can be tailored around local industries and growth sectors.

Rather than relying on a one-size-fits-all system designed in Whitehall, the approach will allow areas to shape education around the industries that matter and are growing in their communities. That could include advanced manufacturing, AI, digital and technology, clean energy, life sciences, construction, health and care, or the creative industries, depending on local strengths and where the jobs of the future are being created.

To support this, the Government will prioritise funding towards high-quality technical education and practical routes into work. The Government will also change the way school performance is measured. Inspectors will recognise the schools that provide high quality technical education and support young people to develop the skills, experience and confidence employers want.

Together, these changes will give schools clear incentives and strong support to expand high-quality technical pathways, rather than treating technical education as an optional add-on or a less valued alternative to academic study. This will also ensure that the new technical pathways are properly recognised alongside academic achievement, so young people have real choice over their future.

Whether young people choose university, an apprenticeship, further education or direct entry into a skilled profession, they will now be able to see a clear route from education into employment, gaining the knowledge, skills and experience they need to secure the good jobs and opportunities in their area.

The changes will be part of the Government’s wider programme of devolution – giving local leaders greater influence over education for 14 to 16-year-olds. The Government will now work together with mayors, local leaders, schools, colleges and employers to develop the new technical education pathways ahead of an ambition to begin rolling them out from September 2028.

The changes announced today are just the first step in the Prime Minister’s plans to tackle the youth unemployment crisis.  

Prime Minister Andy Burnham said: “For too long in this country, students have been told that you must take the academic path to do well and to be respected. The whole school system has been built around it and that has let down young people seeking technical qualifications.

“I want an education system based on parity between academic and technical which gives all young people a clear path in life. From today, Britain will value the hard hat every bit as much as the graduation cap.

“In a fundamental change to the education system, we will introduce new technical education pathways from 14 – prestigious routes that will give students the chance to combine the core academic subjects with the skills, technical knowledge and experience they need to get quality, well-paid jobs where they live.

My message to young people is this – whether you choose construction, coding or classics, or maths, manufacturing or mechanics, you’ll get the skills you need and be given the respect you deserve.

“Fixing the youth unemployment crisis in Britain will require a major shake-up in how we do things – and that’s what this government will do. I want to ensure that our education system leaves no dead ends for our young people. The changes we’re announcing today will just be the start of our work to restore opportunity and hope across the country.”

Alan Milburn’s interim report warned that Britain is at risk of a “lost generation”, with over a million 16 to 24-year-olds now not in education, employment or training. His findings painted a stark picture of a system that too often leaves young people leaving school without the skills, experience or connections they need to step into the world of work.

Many young people are struggling to make the transition into employment, with growing evidence that qualifications alone are no longer enough to secure a good job. If a young person loses contact with work at the start of their adult life, the consequences can last for decades with lower earnings, fewer opportunities, worse health and a greater risk of long-term dependence on the state.

The Prime Minister believes the best way to bring down the welfare bill is to stop people becoming disconnected from work in the first place, which is why the Government is intervening earlier to strengthen links between schools and employers and to create clear routes into employment. 

Education Secretary Lucy Powell said: ““Every young person should be able to see a route to success, whatever their talents or ambitions. That’s why today is so important. It marks the start of a real shared effort with employers, businesses, mayors and councils to design an education system that connects young people to jobs and careers in their local area.

“By offering high-quality technical and vocational education alongside academic achievement, we’ll give more young people the chance to leave education with the skills, confidence and opportunities they need to thrive in today’s economy and the careers of the future.

“The technological revolution we are living through should mean young people become the fresh lifeblood our economy needs to adapt and grow. I want to make sure this generation is able to seize that opportunity, whatever their background or postcode.”

Alan Milburn said: “A million young people are being failed by a system that isn’t creating the opportunities for them to progress in life. The world of work is changing and the education system isn’t keeping up. 

“The changes the PM is announcing today are very welcome. They are a big step in the right direction and consistent with the findings of my review. A whole system reset is needed across health, welfare and labour market policy as well as in education and skills. I know the PM recognises this and my final report will outline the further changes that are needed.”

Mayor of London, Sadiq Khan, said: ““For too long, young people leaving school, college or university have faced real uncertainty about what awaits them. They’re not short of talent or ambition, but the roles they need to kickstart their careers and build their futures appeared to have dried up. Meanwhile, rapid advances in AI are changing the world of work altogether.

“That’s why I welcome these new plans from the Prime Minister to tackle the root causes of youth unemployment. This is fully aligned with the work we’re already doing in London, including £18 million of new funding from City Hall, to help thousands more young Londoners into work and training and to prepare them for the jobs of tomorrow.

“Our ambition is to build a future where every young person has the chance to follow their dreams, fulfil their potential and shape our world for the better, and this is the future that we’ll continue to build together.”

Tracy Brabin, Mayor of West Yorkshire, said: ““Here in West Yorkshire, devolution has emboldened us to make a simple promise to our young people – that no one will leave education without having first set foot in a workplace. Now, these bold measures from the Prime Minister will empower us to go even further. 

“By putting technical and academic education on an equal footing, we can help ensure that more of our young people leave school with the skills they need to succeed in life and work.”

Michelle Ovens CBE, CEO, Small Business Britain said: ““Small businesses are the heart of communities and are at the front line of working with schools and young people to create routes into work.

“Often supporting those furthest from the labour market, small business are and will be at the centre of this national effort, building on their strong local networks and driven by a personal investment in the success of their local economies. 

“This is why we at Small Business Britain welcome this programme. This is a great step towards preparing young people for the future, which needs to include business skills and entrepreneurship as core to the changing world of work. We look forward to supporting the Government and local communities get this into action. ”

TUC General Secretary Paul Nowak said: ““Andy Burnham is absolutely right to launch a national effort to tackle the crisis number of young people out of work, education and training. The place-based approach the new prime minister has set out is welcome and unions can play a key role in ensuring it is a success.

“Putting technical education on an equal footing with academia brings us closer to the international standard for skills.

“And a qualifications framework that gives all young people opportunities to develop the skills and experience they need to move into a good first job with decent prospects is the right move. It’s vital this is met with adequate funding for both FE and schools to ensure meaningful careers guidance and relevant technical routes for young people.”

Helen Dickinson OBE, Chief Executive of the British Retail Consortium, said: ““Retail has long provided the first rung on the career ladder for millions of people, and will continue to offer young people the skills, opportunities and experiences they need to build lifelong rewarding careers.

“Retail has so much to offer young people, and the industry is ready to play its part in tackling the youth unemployment crisis.” 

Burnham pledges ‘growth in every postcode’ as he visits Scotland

BUT YER NO’ GETTING ANOTHER REFERENDUM

  • Prime Minister vows to bring back hope ahead of first meeting with First Ministers of Scotland and Wales.
  • Andy Burnham will also attend the opening ceremony of the 2026 Commonwealth Games in Glasgow.
  • Will say devolution has to be about giving local communities power.
  • Comes as the Prime Minister gives families across the nations more breathing space with immediate action on the cost of living.

Prime Minister Andy Burnham will pledge to deliver growth in every postcode across the UK as he visits Scotland during his first week in office.

This afternoon [Thursday 23 July], the Prime Minister will hold meetings in Glasgow with the First Minister of Scotland John Swinney and the First Minister of Wales Rhun ap Iorwerth, before watching the opening ceremony of the 2026 Commonwealth Games later on. 

During his talks the Prime Minister will set out how he plans to work collaboratively with the heads of the Scottish and Welsh Devolved Governments – based on a genuine partnership.  

Prime Minister Andy Burnham said: “When I say we need good growth in every postcode, I mean every postcode across the whole of the UK. Every place and every person matters.

“I’m not focused on point scoring or discussing constitutional changes like referendums, I want practical measures to help people live well and bring back hope. 

“That’s why I’m giving families more breathing space with help on the cost of living, which I have started this week by taking VAT off electricity bills, saving money for millions of households.”

In his first week, the Prime Minister has taken action to give families more breathing space by cutting taxes on energy bills for tens of millions of families this winter.

But this is just the start. As the Prime Minister has said, we need to rewire the Westminster-centric system that has left too many people feeling disconnected from decision making. That’s why he has set up No10 North to spread opportunity and investment more fairly across the UK and put power closer to people’s lives. 

The government says they are building a new economy, re-industrialising the United Kingdom and using public procurement to back our industry and create jobs.

The Prime Minister is expected to meet with the First Minister and Deputy First Minister of Northern Ireland on his tour of the United Kingdom in August, where he will visit places across England, Scotland, Wales and Northern Ireland.

Through this tour, the Prime Minister will hear from people about what is needed in their communities as we restore hope that’s not been there in recent decades.