The Prime Minister’s plans to give a share of income tax revenue to regional mayors “has the potential to transform our communities”, the head of the National Council for Voluntary Organisations has said.
Under the plans, set out by Andy Burnham today, the government will also allow strategic authorities in England to retain some money from business rates collected in their areas.
The proportion of tax revenue that will be retained under the scheme is not expected to be announced until the budget later this year.
Kate Lee, chief executive of the NCVO, said: “Giving mayors more funding to tackle key local issues has the potential to transform our communities.”
But she said this would only work if mayors engage the people and organisations who understand the issues and how to address them.
“That means bringing charities and voluntary organisations into the heart of local decision-making,” said Lee.
“They have deep local knowledge and trusted relationships that no one else can replicate, and the vital work they deliver is already improving lives across the UK every day.”
She said the voluntary sector was a “significant driver of growth in every part of the country, creating jobs, developing skills, supporting people into employment and building stronger, more resilient communities”.
Lee said: “As mayors take on greater responsibility for economic growth, it is crucial they see civil society as an invaluable strategic collaborator, not simply as a delivery partner or nice to have.”
She said the places that succeed would be those where mayors use their new powers to work in collaboration with organisations from both civil society and the impact economy to create lasting change.
“Investing in the coordination and partnerships that bring these sectors together will lead to clearer local priorities, better decisions, stronger communities and growth that is genuinely felt by everyone,” she said.