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Andy Burnham to set out devolution plan amid criticism it won’t benefit regions equally – UK politics live

From The Guardian · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • English regional mayors will gain control over income tax receipts and borrowing powers from 2028, shifting power from the central Treasury.
  • The government plans to give mayors a share of business rates by 2027 and greater control over housing and transport, as part of its devolution agenda.
  • Critics question if the plans will benefit all regions equally, fearing faster-growing areas might receive more funding, potentially widening economic disparities.

English regional mayors are set to gain significant new financial powers and control over key services, marking what the government calls "the biggest transfer of power from Westminster in a generation." Starting in 2028, mayors will receive a share of income tax receipts instead of relying solely on central grants. They will also gain the ability to borrow for investment and retain a portion of business rates by April 2027, alongside increased control over housing and transport.

the biggest transfer of power from Westminster in a generation

— Government officialDescribing the significance of the new devolution plans.

These changes aim to reduce the Treasury's grip on local funding, which has traditionally led to uneven distribution and disempowered local leaders. The government plans to develop separate proposals for Scotland, Wales, and Northern Ireland. While local leaders see the shift away from ringfenced Treasury handouts as transformative, the specific details are still emerging, with a white paper and budget announcement expected this autumn.

could mean those who lose out are precisely those areas which have seen weaker local economies over recent years.

— Mel StrideConservative shadow chancellor, criticizing the potential for unequal funding distribution.

However, the plans have drawn criticism. Conservative figures worry that the new system could disproportionately benefit economically stronger areas, potentially leaving those with weaker local economies further behind. Some mayors are reportedly considering using their new powers for tax reliefs. Officials acknowledge that wealthier areas like London might retain more money, but state that a formula will be implemented in the budget to ensure funding distribution corrects for disparities and prevents poorer areas from falling behind.

There is already a way that the business rates retention is distributed to correspond with central funding formula to correct for that. Because you wouldn’t want to have it that places like London and Manchester and Bristol were able to retain more of theirs while other areas that weren’t growing at the same rate, were falling behind. So there will be a formula and funding position set out in the budget that that corrects this, but reall

— Louise HaighChancellor of the duchy of Lancaster, addressing concerns about wealthier areas retaining more money.
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Originally published by The Guardian. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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