Mayors: Taxation

(asked on 14th September 2026) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Cabinet Office policy statement, Rewiring the State – Cabinet Statement, of 31 July 2026, whether strategic authority mayors will be able to cut (a) income taxes, (b) business rates or (c) council tax, using the revenues from locally-retained central government taxes.


Answered by
James Murray Portrait
James Murray
Financial Secretary to the Treasury and Paymaster General
This question was answered on 16th October 2026

The Government’s proposal will assign mayors a share of locally raised income tax and provide greater business rates retention. They will not give mayors powers to change the rates of income tax, business rates or council tax, which will continue to be set under the relevant existing arrangements.

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