West Yorkshire set to get more control over its own money under major devolution shake-up
A share of the income tax raised in West Yorkshire could stay in the region under major new Government plans to give local leaders greater control over funding decisions.
The proposals, announced today, would see mayoral authorities receive a proportion of income tax generated in their areas, alongside retaining full business rates.
The Government says the changes will give regions greater financial certainty and allow more decisions about investment in areas such as transport, housing, skills and economic growth to be made closer to local communities.
Its plans form part of what ministers have described as the biggest transfer of power from Westminster in a generation.
Further details on how the new funding arrangements will work are expected to be set out in the Autumn Budget.
Further details on how the new funding arrangements will work are expected to be set out in the Autumn Budget.
"Giving extra powers and a proportion of income tax to regions mean people will be able to see and feel the benefit of hard work and where that money is going.
"This will enable us to deliver on our ambitious plans including vital improvements to public transport, providing better skills and employment support so people can fulfil their potential and building the homes that people need."
The Government says the reforms are intended to give mayoral authorities more control over the money available to them and create a closer link between local economic growth and future investment.
Prime Minister Andy Burnham said the changes were about ensuring decisions could be made closer to the communities they affect.
He said: "It's time to trust local leaders with the tools they need to deliver for their communities.
"These reforms mean power flows out of Whitehall and into every postcode."
The proposals would represent a further step in the devolution of powers to England's regions, with West Yorkshire set to have a greater role in deciding how funding is used locally if the new arrangements are introduced.
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