Key facts
- England's mayors should face greater official scrutiny as their powers and funding expand, according to IPPR North.
- New plans will give regional leaders control over potentially billions of pounds in additional funding.
- From 2028, mayors could keep a share of income tax generated in their areas.
- Mayors will also retain business rates from 2027 and can raise funds through a tourist tax.
- IPPR North proposed establishing regional audit offices and senior accounting officers for oversight.
- Larger mayoral authorities should have enhanced accountability committees to prevent misuse of funds.
England's mayors should be subjected to significantly increased official scrutiny to safeguard against potential mismanagement as their powers and funding grow, a thinktank has advised. IPPR North, which has collaborated with Greater Manchester mayor Andy Burnham's government, welcomed the government's "bold and ambitious" plans to shift power away from central government. These plans, set to be detailed next month, aim to give regional leaders control over potentially billions of pounds in additional funding, with mayors potentially able to keep a share of income tax from 2028, retain business rates from 2027, and implement a tourist tax.
IPPR North suggested that mayors should be allowed to retain 5% of income tax, which could transfer approximately £3.8 billion annually from Whitehall and effectively double the funding under their control. However, the thinktank emphasized the need for tougher oversight mechanisms for these increasingly powerful roles. In its report, IPPR North warned that a single "bad decision or mismanaged funding" could undermine public support for devolution and reverse progress.
To address these concerns, IPPR North proposed the establishment of new regional audit offices to scrutinize spending and outcomes. It also suggested that each region should be overseen by a senior accounting officer, mirroring the structure of permanent secretaries in government departments. For larger mayoral authorities, such as London, Greater Manchester, and the West Midlands, the thinktank recommended enhanced accountability committees to guard against potential misuse of funds, corruption, and undue influence from lobbying interests.
Andy Burnham has prioritized the transfer of power outside of Whitehall, establishing a dedicated office in Manchester to drive devolution. The proposed changes, outlined in a Cabinet Office paper, represent a significant shift of authority to English regions. Concerns exist regarding the capacity of newer and smaller combined authorities to manage these expanded responsibilities, which cover areas like employment support, transport, housing, innovation, energy, and cultural investment. Some mayoral bodies, like those in Hull and East Yorkshire and Greater Lincolnshire, were only established last year, while others are still in the planning stages.
Aditi Sriram, the report's lead author, described the current moment as "defining" for governance in Britain and stressed the importance of accountability for devolution's success. She noted that mayors have often been hampered by reliance on Whitehall for funding and permission. Jim O’Neill, a former Treasury minister who advised Burnham, suggested in the report's foreword that handing greater powers to mayors in the most populated areas would be the best response to critics who dismiss devolution as a waste of taxpayer money, provided they possess the capacity, desire for accountability, and aspiration to be bold.