Burnham Unveils 3-Part Plan to Rewire English Government Around Mayors
Updated
Updated · The Guardian · Aug 1
Burnham Unveils 3-Part Plan to Rewire English Government Around Mayors
3 articles · Updated · The Guardian · Aug 1
Summary
A cabinet paper released Friday sets out a mayor-led model for England, with pan-regional bodies for transport, energy, investment and industry crossing local boundaries.
The overhaul would let mayors retain income-tax and business-rate revenue, with the coming budget and spending review deciding how much they keep.
Burnham also backs a German-style equalisation duty so poorer regions still receive redistribution; one estimate showed London would get £2.3bn versus £135m for Hull and East Yorkshire.
New mayoralties are due in Cumbria and Cheshire and Warrington in 2027, then southern and eastern regions in 2028, while other areas must choose stronger mayoral authorities or weaker foundation bodies.
The push reflects a wider argument that Britain’s productivity problem is rooted in regional inequality, with one new paper saying the south-east gap now exceeds the divide between east and west Germany.
Will shifting tax powers to metro mayors truly empower communities, or just trigger a bitter postcode lottery for public services?
With local leaders finally controlling your income tax, are you about to pay the price for their experimental regional projects?
The Biggest Fiscal Devolution in a Generation: How the UK’s Autumn Budget Will Shift Billions in Income Tax from Westminster to English Metro Mayors
Overview
The UK government is launching a major shift in power by allowing English metro mayors to keep a share of local business rates and income tax, starting in 2027 and 2028. This move aims to end the old 'begging-bowl culture' where local leaders depended on central grants, giving them stable revenues and the ability to borrow for local projects. By focusing on residents’ earnings, mayors are encouraged to invest in skills and transport, not just property. However, this change brings risks of widening regional inequalities, so strong redistribution and accountability systems are needed to ensure fair growth and responsible local spending.