Andy Burnham's Devolution Pledge: Challenges Ahead 2026

Daniel Harrolds
Andy Burnham's Devolution Pledge: Challenges Ahead
This page may contain affiliate links.

Andy Burnham's devolution pledge to transfer power from Westminster to every postcode in the country is a bold vision, but delivering it will be tricky. As the UK's fiscal centralization remains among the highest in the developed world, the path to meaningful local control is fraught with complexity and political hurdles.

The Scale of the Challenge

Britain's devolution history is a patchwork of piecemeal reforms. Under the Conservatives, ringfenced funding pots created a begging-bowl culture, while austerity cut billions in central grants. The result: only 5% of tax revenue stays with mayors and local authorities, compared to 14% in France and 22% in Japan.


25% Off All iHerb Brands

Find Bleeding Edge Supplements at Scandalous Prices on iHerb.


This centralization has fueled regional inequalities and independence movements in Scotland, Wales, and Northern Ireland. Burnham's proposal to let mayors retain a share of income tax could be a game-changer, but it faces significant implementation hurdles.

ADVERTISEMENT

Tax-Sharing Proposal: Pros and Cons

Economists largely support the idea, first announced by Rachel Reeves, as a way to tackle regional disparities. The Institute for Fiscal Studies estimates that 6-9% of local income tax revenues could replace current central grants. However, the transition will take time and require careful design to avoid unintended consequences.

Aspect Current System Proposed System
Tax revenue staying local 5% 6-9% (estimated)
Funding source Central grants Local income tax share
Accountability Westminster Regional mayors
Flexibility Low High

Key Obstacles to Delivery

  • Political resistance from Westminster to cede control.
  • Technical complexity in tax collection and allocation.
  • Fiscal risk for poorer regions with lower tax bases.
  • Timeline pressure with a budget set for autumn.

What Needs to Happen Next

Burnham must navigate a tightrope between ambition and practicality. He needs to build consensus among mayors, Treasury officials, and the public. Pilot programs and phased implementation could ease the transition, but the clock is ticking.

Ultimately, the success of this pledge hinges on whether the government can move from rhetoric to workable policy. The upcoming budget will be a critical test of Burnham's ability to turn promises into reality.

FAQ

What is Andy Burnham's devolution pledge?

Burnham promised to transfer power from Westminster to every postcode, including giving regional mayors a share of income tax to support local economic development.

Why is UK fiscal centralization a problem?

Only 5% of tax revenue stays local in the UK, compared to 14% in France and 22% in Japan, leading to regional inequalities and a begging-bowl culture.

How much tax share is needed to replace central grants?

The Institute for Fiscal Studies estimates that 6-9% of local income tax revenues would be sufficient to fully replace integrated settlements.

ADVERTISEMENT
ADVERTISEMENT
Daniel Harrolds

Author

Daniel Harrolds

With a career spanning four decades, Daniel is almost a library in the field of precious metals investing and Gold IRAs. His insightful strategies and pragmatic results-oriented approach make him a resource in safeguarding wealth, and financial foresight.


SPONSORED

Get Lifetime Access to the Lastest Movies, with Exclusive Offers & Free Express Order Delivery.

The best paddle surf board isn't at Decathlon: it's this one with thousands of accessories and outlet pricing - Grand Goldman

The best paddle surf board isn't at Decathlon: it's this one with thousands of accessories and outlet pricing - Grand Goldman

Even if you keep up a great workout routine all year round, when vacation time comes, we usually tend to slack off and put training aside. A good w...

Read
This is the best time to get cheap, good running shoes: here's why - Grand Goldman

This is the best time to get cheap, good running shoes: here's why - Grand Goldman

Running is an accessible sport and we only need a little time and a good pair of running shoes to get going, which we can find right now at a good ...

Read
Sports sunglasses: which is the best to buy? Tips and recommendations - Grand Goldman

Sports sunglasses: which is the best to buy? Tips and recommendations - Grand Goldman

The sun gives us energy that is vital for our system, but it can also harm us, which is why protection is vital. As Paracelsus said: the dose makes...

Read
The best folding stationary bikes: which one to buy? Tips and recommendations - Grand Goldman

The best folding stationary bikes: which one to buy? Tips and recommendations - Grand Goldman

When looking for a way to stay in shape from the comfort of our own home, few options are better than getting an exercise bike or a recumbent bike ...

Read
Pull-up bar: which one is best to buy? Tips and recommendations - Grand Goldman

Pull-up bar: which one is best to buy? Tips and recommendations - Grand Goldman

Pull-ups are undoubtedly one of the best exercises you can do to train your back and core muscles. Choosing a pull-up bar is not simple, as there a...

Read
Sports headphones: which is the best to buy? Tips and recommendations - Grand Goldman

Sports headphones: which is the best to buy? Tips and recommendations - Grand Goldman

There are times when exercising can get a bit boring and tedious; not every day we are and we need an external stimulus to encourage us to train. ...

Read
Sports Sunglasses: Which Is Best to Buy? Tips and Recommendations - Grand Goldman

Sports Sunglasses: Which Is Best to Buy? Tips and Recommendations - Grand Goldman

The sun provides us with energy that is vital for our system, but at the same time, it can be harmful. As Paracelsus said: the dose makes the poiso...

Read
These are the best thermal bottles to stay hydrated during this heat wave while we train in summer - Grand Goldman

These are the best thermal bottles to stay hydrated during this heat wave while we train in summer - Grand Goldman

We are experiencing one of the toughest weeks of summer, with places in the country reaching nearly 45º, making going outside dangerous, and even m...

Read
Adidas Salomon Reebok: the best deals on running and training shoes on Amazon Prime Day - Grand Goldman

Adidas Salomon Reebok: the best deals on running and training shoes on Amazon Prime Day - Grand Goldman

Finally, the Prime Day 2023 has begun, where we can find great deals on the Amazon website between July 11 and 12. We are sure that sports enthusia...

Read
Adidas, Puma, Reebok: the best deals on running and training shoes on Amazon Prime Day - Grand Goldman

Adidas, Puma, Reebok: the best deals on running and training shoes on Amazon Prime Day - Grand Goldman

Finally, Prime Day 2023 has begun, where we can find great deals on the Amazon website between July 11 and 12. Sports enthusiasts are sure to want ...

Read

ADVERTISEMENT




SPONSORED