England's mayors should face much greater official scrutiny as their powers expand, according to a leading thinktank. IPPR North warns that without robust oversight, the government's devolution agenda could be derailed by a single bad decision. The call comes as ministers prepare to hand regional leaders control over billions of pounds in additional funding.
Devolution Deal: A Transformational Shift
From 2028, mayors will be able to retain a share of income tax generated in their areas, giving them greater scope to borrow for major infrastructure projects. They will also keep business rates from 2027 and gain the ability to raise funds through a "tourist tax." IPPR North has welcomed these "bold and ambitious" plans as a step towards reversing decades of damaging over-centralisation.
The thinktank's 30-page report calls for mayors to retain a 5% share of income tax, which would move an extra £3.8bn a year out of Whitehall and roughly double the funding under their control. This shift represents a significant transfer of power from central government to regional authorities.
Risks of Expanded Powers Without Oversight
However, IPPR North cautions that increasingly powerful mayors must be subject to much tougher oversight. The report warns: "A bad decision or mismanaged funding from any one authority risks turning public opinion against devolution and undoing progress." This concern is particularly acute given the high-profile nature of mayoral roles and the potential for financial mismanagement.
To mitigate these risks, IPPR North proposes establishing new regional audit offices to scrutinise how money is spent and what it delivers. These offices would provide independent oversight and ensure that funds are used effectively. The thinktank argues that such measures are essential to maintain public trust and ensure the success of devolution.
Key Proposals for Scrutiny
- Establish regional audit offices to monitor spending and outcomes.
- Allow mayors to retain 5% of income tax, boosting local funding by £3.8bn annually.
- Implement tougher oversight mechanisms to prevent mismanagement.
- Ensure transparency in how funds are allocated and used.
Comparison of Current and Proposed Powers
| Aspect | Current Powers | Proposed Powers (from 2027/2028) |
|---|---|---|
| Income Tax Retention | None | 5% share |
| Business Rates | Limited | Full retention from 2027 |
| Tourist Tax | Not allowed | Ability to raise |
| Oversight | Standard | Regional audit offices |
The table illustrates the significant expansion of fiscal powers for mayors, alongside the proposed strengthening of oversight. This balanced approach aims to empower regions while safeguarding against potential pitfalls.
Implications for Local Governance
The success of these reforms hinges on striking the right balance between autonomy and accountability. Mayors like Andy Burnham have been at the forefront of devolution, and their ability to deliver will depend on both adequate funding and robust scrutiny. As IPPR North notes, the goal is to avoid a situation where one bad decision undermines the entire devolution project.
With the government set to outline its plans next month, the debate over how best to implement these changes is intensifying. Stakeholders across the political spectrum are weighing in on the need for careful design and implementation.
FAQ
Why do England's mayors need greater scrutiny?
As mayors gain control over billions in funding, the risk of mismanagement grows. Greater scrutiny ensures accountability and prevents bad decisions from derailing devolution.
What new powers will mayors receive?
From 2027, mayors will retain business rates; from 2028, they can keep a share of income tax and raise funds through a tourist tax.
How will regional audit offices help?
They will provide independent oversight, ensuring funds are spent effectively and delivering value for money.
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