Andy Burnham, Mayor of Greater Manchester, has proposed a devolution plan allowing regional leaders to retain a portion of income tax and business rates [1].
This shift in fiscal policy would grant English regions greater autonomy over their budgets. By reducing reliance on central government allocations, leaders in cities like London and Manchester could potentially accelerate investments in critical local services [1].
The plan specifically targets the funding of transport, jobs, and housing projects [1]. Under the proposed framework, regional leaders, including Sir Sadiq Khan, Mayor of London, would have more direct control over the revenue generated within their jurisdictions [1, 2].
Burnham's proposal aims to address long-standing disparities in how funds are distributed across England. By keeping a share of business rates and income tax, regional governments could tailor spending to the specific economic needs of their populations [2]. This approach seeks to create a more sustainable funding model for urban development, one that does not depend on the fluctuating priorities of the national treasury [1].
The focus on transport and housing is intended to stimulate economic growth. Greater fiscal autonomy would allow mayors to implement long-term infrastructure strategies without seeking repeated approvals for individual project grants from the central government [1, 2].
While the plan is currently a proposal, it represents a significant push for a fundamental change in the relationship between the UK central government and its regional administrations [1].
“The plan would let regional leaders keep a portion of income tax and business rates.”
This proposal signals a push toward a more federalized system of governance in England. If implemented, it would shift the power balance from the central government to regional mayors, allowing for localized economic strategies but potentially creating wider funding gaps between wealthy urban hubs and poorer rural areas.
