According to the BBC, new legislation will give elected mayors the discretion to allocate a portion of tax receipts directly to local grant programmes. This shift in fiscal authority allows city leaders to address community needs without relying on central government intermediaries, forming part of broader devolution efforts aimed at empowering regional authorities. The Tory Tees Valley Mayor, Ben Houchen, said he is developing what he calls a “tax rebate scheme” to channel funds back to residents. His initiative, still in the planning stages, is intended to demonstrate how the new powers could support local projects and provide financial relief. The BBC highlighted the scheme as an early example of the expanded mayoral responsibilities in action. The announcement follows calls from council leaders for more flexible funding mechanisms. While details on how the tax share will be calculated and distributed remain to be finalised, the government has indicated the framework will be rolled out across other mayoral combined authorities. The BBC noted that the move could set a precedent for other regions seeking greater fiscal autonomy.
Source: BBC News.
