00:00The government says communities should benefit more directly from the success they help create.
00:06Under proposed reforms, English mayors would keep a share of income tax, revenues and business rates raised locally,
00:14giving them greater financial control over spending priorities in their areas.
00:19The plans are expected to be set out in a white paper published alongside the Chancellor's autumn budget.
00:24Ministers say the changes represent the biggest transfer of power from Westminster in a generation
00:30while leaving national income tax rates unchanged for taxpayers across England.
00:35The government also says an equalisation system will remain in place.
00:39That means places collecting less tax would continue receiving financial support,
00:43aiming to prevent wealthier areas gaining an unfair financial advantage
00:47under the proposed arrangements for local government funding.
00:50Liverpool City Region Metro Mayor Steve Rotherham has welcomed the announcement.
00:54He said allowing more locally generated revenue to stay within the region
00:59would help support investment in public transport, housing, skills and infrastructure,
01:05building on existing devolution powers and supporting long-term economic growth.
01:10Prime Minister Andy Burnham says every local leader should have the resources needed
01:15to improve services and create opportunities.
01:19If approved, the proposals would extend financial powers for English mayors
01:23while keeping central government support for communities where tax revenues remain lower.
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