Mayor says PM’s pledge to share tax income with region will improve local lives

Richard Parker, Mayor of the West Midlands, today pledged to use his share of the millions paid in income tax and business rates by local people to provide the things that matter most to them. 

The Mayor said the Prime Minister’s pledge to give him a share of the income from these two taxes means he will have the financial firepower to drive more of the vital things the region needs, including jobs and the skills people need to land them, affordable housing, and better transport – whilst easing the cost-of-living for residents. 

Reacting to Andy Burnham’s announcement of the biggest transfer of power, funding and responsibility from Westminster to the regions in a generation, the Mayor said the additional powers would accelerate the success already achieved by the West Midlands under its existing devolution deal with government. 

He added that the removal of Whitehall’s ability to block local transport and other infrastructure projects, and the transfer of control over the education of 16-19-year-olds, were also significant new powers. 

“We’ve already shown under devolution what we can achieve when we are trusted, smashing government targets on homes, jobs and business support while building new rail stations and Metro routes,” the Mayor said. 

“But the financial firepower being given to me by the Prime Minister means we will be able to go even further and faster, delivering the things that really matter to local people. 

“The Prime Minister trusts us to deliver. He knows how much more we can achieve by putting further powers and funding into the hands of local people – who have skin in the game. Local decisions are better decisions and that means more local lives changed for the better.” 

The Mayor described the West Midlands as a mature region that is leading the way in harnessing new powers and funding for the benefit of its people, and where devolution is already proven to be working: 

• Devolved transport powers are improving everyday journeys, with the Mayor bringing buses back under public control; new Metro tram extensions in the Black Country and Birmingham; five new railway stations; funding doubled for pothole repairs; and the development of “tap and cap” contactless ticketing across bus and Metro. 

• Devolved regeneration powers are creating opportunities for local people, with £5 billion of investment creating 30,000 jobs in sectors such as advanced manufacturing, clean energy and health tech. The Birmingham East Mayoral Development Corporation is bringing 50,000 jobs and 20,000 new homes as part of the regeneration of a traditionally deprived part of the city. 

• Devolved housing funding is helping more residents into quality homes, supporting the delivery of a record 7,237 new homes last year, of which 2,452 are affordable and 1,086 are social - the most affordable type of housing. 

• Devolved skills and employment funding is giving people better life chances, creating more than 20,000 work experience placements for young people and providing job training that has helped 5,000 unemployed people back into work. The Mayor recently announced a dedicated £75m fund to train 12,000 people to work in the booming construction industry. 

• Devolved business support funding is strengthening the regional economy, helping more than 10,000 local businesses to grow and create almost 3,000 new jobs between them. 

Today’s announcement is being described as the largest package of financial powers ever offered to English mayors.  

In addition to a share of what the region pays in income tax and business rates, local leaders will gain greater control over the services that shape people's lives, including housing, transport, skills, jobs and public services.  

These include putting rail and bus services under greater local control, stronger planning and regeneration powers, speeding up approvals for major transport schemes such as trams, and giving Mayors control of 16-19 funding and employment support.