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Written question asked by James McMurdock (Independent (affiliation)) on Friday, 28 August 2026, in the House of Commons. It was due for an answer on Wednesday, 2 September 2026. It was answered by Jim McMahon (Labour) on Tuesday, 8 September 2026 on behalf of the Ministry of Housing, Communities and Local Government.

Local Government Finance: Essex

Question

To ask the Secretary of State for Housing, Communities and Local Government, with reference to the 10 Downing Street press release entitled PM hands mayors share of income tax to make lives better in every postcode, published on 30 July 2026, what recent discussions her Department has had with (a) Basildon, (b) Thurrock and (c) Essex councils on the proposed arrangements for retaining income tax revenues.

Answer

In the Cabinet Statement of 31 July, we set out our intention that mayors will keep a share of local income tax, replacing central government grants, beginning in 2028. For areas to benefit from this, they will therefore need to be part of a Mayoral Strategic Authority. Greater Essex is a prospective Mayoral Strategic Authority area, as part of the Devolution Priority Programme, and we await confirmation from all relevant council leaders in Essex that they wish to proceed with devolution, ahead of legislating to establish the Authority.

Devolution is the transfer of powers and funding from national government to local areas. Local government reorganisation is about how the powers and funding that sit with local government are organised between councils. While local authorities will continue to be responsible for the critical daily services that their residents rely on, strategic authorities will be institutions with a wider regional focus, responsible for unlocking investment, infrastructure and economic growth across large geographies. It is Mayoral Strategic Authorities that will keep a share of local income tax rather than local councils, and so this stands independently of local government reorganisation and of accountability mechanisms for local authorities. Mayors will not have powers to change tax rates or thresholds.

Secondary information

Type
Written question
Reference
25752
Session
2026-27
Grouped for answer
Yes
Subjects
Income tax Essex Local government finance Business rates
Link
View this Written question on www.parliament.uk