England's Mayors Want More Tax Power: Why Tougher Checks Must Come First
England's mayors should face tougher official checks so one bad decision does not derail devolution, IPPR North has said. The warning is in a 30-page report on mayoral powers and accountability published on 22 September, led by author Aditi Sriram. The Guardian
The report links more financial freedom to stronger oversight. IPPR North called for English mayors to keep a 5% share of income tax raised in their areas. It estimated the change would move an extra £3.8bn a year from Whitehall, the central government, and roughly double funding under mayoral control.
That idea sits within a timetable that is already set. English mayors will keep business rates, a tax on business properties, from 2027. From 2028, they will keep a share of local income tax to allow more borrowing for infrastructure such as transport and housing. They will also raise money through a tourist tax. Ministers are due to set out a timeline for fiscal devolution, the handover of tax powers to regions, in a white paper alongside the autumn budget on 28 October.
On accountability, or how spending is checked, IPPR North proposed new regional audit offices to review mayoral spending. Each English region would have a senior accounting officer, similar to a permanent secretary, the top civil servant in a department. Larger mayoral authorities such as London, Greater Manchester and the West Midlands would get strengthened accountability committees. The think tank warned that a bad decision or mismanaged funding in one area could turn public opinion against devolution.
The proposals follow recent law changes. The English devolution bill in 2026 created a new Local Audit Office. It also gave new powers to scrutiny committees, groups of councillors who check mayoral decisions. The Guardian IPPR has separately argued that more power for mayors should come with pushing more decisions down to communities. The Times
The money involved covers several existing funds. Combined authorities with a mayor, partnerships of neighbouring councils, gain an extra £30 million a year over 30 years. Local Government Association A £500 million mayoral revolving growth fund for mayors in the North and Midlands pays for growth projects and aims to attract private investment. Institute for Government In 2025/26, £579 million went to English devolution areas without integrated settlements, long-term single funding deals. English mayors are also gaining more control over skills and employment support, including funding for 16-19 education, to support local jobs. MHCLG Under the English Devolution and Community Empowerment Bill, Established Mayoral Strategic Authorities have a 'right to request' to ask for further powers, funding and partnerships.
The broader context here is a trade-off familiar in devolution. More tax control gives local leaders more room to borrow and choose priorities. It also means political risk is concentrated. Failure in one place can shape debate everywhere else.
Looking at what comes next, the October white paper will show how far Whitehall accepts that link between money and checks. IPPR North used direct language in May 2025. Its media release was titled 'Powerful mayors need watchdogs with bite'. Its analysis was titled 'Accountability matters: Securing the future of devolution'. The September report applies that same argument to keeping tax. Scrutiny is described not as a limit on mayors, but as what allows their larger role to last.
