The government has confirmed that directly elected mayors will be permitted to use their allocated share of local tax receipts to provide grants directly to residents.
The change gives combined authority and city-region mayors discretion to reallocate the portion of local taxation under their control, enabling one-off or targeted payments to households where local leaders deem appropriate.
Ben Houchen, the Conservative mayor of Tees Valley, said he is working on what he called a "tax rebate scheme" for residents. Houchen has framed the proposal as a way to return money to people locally; he has not published detailed plans, and officials have yet to announce the scale, eligibility criteria or timetable for any payments.
Details of how the new permission will operate in practice — including any national rules, limits on use, or reporting requirements — have not been made public. The decision, however, gives mayors a new fiscal tool that could be used differently across regions depending on local priorities and budgets.