Under a new “local first” principle, Burnham will instruct ministers to justify why powers should remain in Whitehall rather than be devolved. Henri Murison, the chief executive of the Northern Powerhouse Partnership, said the change “completely transforms” what combined authorities would be able to do. Ben Houchen, the Conservative mayor of Tees Valley, suggested he would use the income tax to hand out tax rebates to local people. Since 2024, only two combined authorities – Greater Manchester and West Midlands – have been able to keep all of the business rate income generated in their areas. Three-quarters was retained by each of the 10 local authorities and £25m was kept by the mayoral authority and spent on projects.