Chamber reaction to PM's plans for tax revenue sharing with England’s mayors

John McCabe, chief executive at the Chamber, said: “We welcome today’s announcement as a clear commitment from the new Prime Minister to continue transferring more powers and funding from central government into the regions and nations of the UK. That’s the fundamental principle of devolution and, as a former mayor, Andy Burnham clearly gets it.

“Today, income tax generated by people from Berwick to Barnard Castle is retained in Whitehall for London-based leaders to decide what to do with it. That has to change. More of the wealth created in our region should be retained here and invested according to local priorities.

“The next step is for mayors to work closely with business and other partners to agree on how best to use the new funds at their disposal, ensuring the benefits of good growth are felt across the regions they represent.

“Specifically on business rate retention, we hope this is the first step in a wider, far-ranging review of this outdated tax on business.”