The East and West Surrey Shadow Authorities have welcomed the Government's announcement that strategic authorities across England could receive a share of locally generated income tax and business rates, describing the proposals as an important step towards a more empowered and locally accountable system of government.

The plans, announced by Prime Minister Andy Burnham, form part of a wider programme of devolution which aims to transfer greater powers and resources from Westminster to local areas. Under the proposals, local areas will gain greater powers over transport, housing, skills and economic growth, while mayors will retain a share of income tax and business rates revenue.

The Government has also indicated that areas without a mayor will be supported through the creation of strategic authorities and further devolution arrangements.

The Government has outlined ambitious plans to devolve more powers and funding to strategic authorities across England over the coming years. A Foundation Strategic Authority for Surrey, proposed for 2027, would provide a strong platform for the county to become a Mayor Strategic Authority from 2028 and benefit from further devolution.

Councillor Paul Follows, Leader of the West Surrey Shadow Authority said: "The principle behind these proposals is a positive one. Places like Surrey should have a stronger voice in the decisions that affect their residents, businesses and local economy."

"However, it will be important that government gets the detail right. Any new funding system must be fair, sustainable and recognise the different opportunities and challenges faced by communities across the country."

"We want to work constructively with Government to ensure these reforms deliver real benefits for residents and support the long-term success of Surrey's future strategic authority."

Councillor Steve Wotton, Leader of the East Surrey Shadow Authority, said: "We welcome the Government's ambition to bring decision making closer to communities and to give local areas greater control over the resources needed to drive economic growth and improve outcomes for residents."

"Surrey has a strong economy, a highly skilled workforce and an important role to play in supporting national growth. Giving strategic authorities a stronger link to locally generated revenues has the potential to provide greater certainty for long-term investment in transport, infrastructure, housing and skills."

"The ability to plan over a longer time horizon could help local leaders make better decisions, unlock investment and deliver improvements that residents and businesses want to see."

Further details are expected later this year, including how retained revenues will operate in practice and how funding arrangements will be balanced across different parts of the country. Ensuring that future funding arrangements remain fair, sustainable and responsive to local need will be important to the long-term success of the reforms.

The East and West Shadow Authorities will engage closely with government and local partners as further details are developed, including how funding arrangements could support the proposed future Foundation Strategic Authority for Surrey and help deliver sustainable growth, improved public services and better value for residents.