Burnham's Devolution Plan Frees Mayors from Treasury Grip 2026

Daniel Harrolds
Burnham's Devolution Plan Frees Mayors from Treasury Grip
This page may contain affiliate links.

Andy Burnham's devolution plan frees mayors from the Treasury's grip, granting new borrowing powers and local tax retention to transform regional funding. This landmark shift aims to move decision-making out of Whitehall and into communities across England, with mayors gaining unprecedented financial autonomy from 2027 and 2028.

What the New Devolution Powers Include

Under the proposals, England's directly elected mayors—covering three-quarters of the population—will retain a share of income tax generated in their areas from 2028. Additionally, business rates totaling tens of millions of pounds will be devolved by April 2027, replacing existing grants rather than adding extra funds.


Get the #1 Wireless Door Camera

REOLINK Bestseller: 2K Weatherproof Video Doorbell, No Monthly Fees.


This change allows mayors to borrow for large-scale infrastructure projects, ending the reliance on ringfenced Treasury handouts. Oliver Coppard, Labour mayor of South Yorkshire, emphasized that this provides "long-term certainty around income" and breaks the "death grip of the Treasury."

ADVERTISEMENT

Local First Principle and Ministerial Accountability

Burnham will introduce a "local first" principle, requiring ministers to justify why powers should remain in Whitehall rather than be devolved. This reverses the default centralization, empowering local leaders to address regional priorities such as public transport, housing, and job creation.

The government also plans to reduce the civil service from 520,000 to a "smaller and more strategic" size, with fewer officials based in London. This shift is expected to bring decision-making closer to the people affected by it.

Comparison: Old vs. New Funding Model

Aspect Old Model New Model
Funding source Ringfenced Treasury grants Local tax retention (income tax, business rates)
Borrowing power Limited, subject to central approval Full borrowing for investment projects
Decision-making Centralized in Whitehall Devolved to regional mayors
Certainty Short-term, annual allocations Long-term, predictable revenue streams

Key Takeaways for Local Governance

  • Increased autonomy: Mayors control revenue and borrowing, reducing dependency on central government.
  • Investment in infrastructure: New powers enable funding for transport, housing, and economic development.
  • Accountability shift: Ministers must justify retaining powers, promoting local solutions.
  • Potential for expanded roles: Mayors may oversee schools, GPs, and childcare via commissioners.
  • National impact: A smaller civil service and strategic focus could improve efficiency.

Challenges and Considerations

While these changes are transformative, they come with challenges. Replacing grants with local tax retention means regions with lower tax bases may struggle to fund services equally. Additionally, the transition requires robust fiscal management and accountability to avoid disparities.

Burnham's announcement is part of a broader agenda to decentralize power, but critics question whether all regions have the capacity to manage these responsibilities effectively. Ensuring fair distribution of resources remains a key concern.

ADVERTISEMENT

FAQ

What is the 'death grip of the Treasury'?

The phrase refers to the strict control the UK Treasury holds over local government funding, limiting mayors' ability to invest in long-term projects due to annual grant allocations and spending restrictions.

When will mayors receive new devolved powers?

Business rates will be devolved by April 2027, and a share of income tax will be retained from 2028, replacing existing grants with more flexible local revenue streams.

How will this affect local services like transport and housing?

Mayors will have the power and resources to invest in public transport, build homes, and create jobs, leading to more tailored solutions that meet regional needs.

These devolution measures represent a significant shift in UK governance, promising to empower local leaders and foster economic growth. As the plans unfold, they could reshape the relationship between Westminster and England's regions, delivering on Burnham's promise of a "biggest transfer of power in a generation."

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.


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

Shark PowerDetect Speed Clean Pet Pro Review: Self-Emptying

Shark PowerDetect Speed Clean Pet Pro Review: Self-Emptying

The Shark PowerDetect Speed Clean and Empty Pet Pro cordless vacuum (model IA3241UKT) aims to make vacuuming as frictionless as possible with its i...

Read
Best Supermarket Salad Bags Tasted and Rated for 2026 - grandgoldman.com

Best Supermarket Salad Bags Tasted and Rated for 2026

Product Reviews - Best Supermarket Salad Bags Tasted and Rated for 2026 - Latest updates, Celebrities, and Breaking News on Grandgoldman.com

Read
26 Best Mother's Day Deals Worth Your Money in 2026 - grandgoldman.com

I 26 migliori affari per la Festa della Mamma che valgono i tuoi soldi nel 2026

Recensioni Prodotti - 26 Migliori Offerte per la Festa della Mamma che Valgono i Tuoi Soldi nel 2026 - Ultime notizie e tutto ciò che devi sapere s...

Read
PlayHot Portable Handheld Personal Fan Review - grandgoldman.com

Recensione del ventilatore personale portatile a mano PlayHot

Se stai cercando una soluzione di raffreddamento leggera e ultra-portatile per viaggi, postazioni di lavoro in ufficio o momenti estivi all'aperto,...

Read
Bissell Little Green Portable Carpet Cleaner Review - grandgoldman.com

Bissell Recensione del Pulitore Portatile per Tappeti Piccolo Verde di Bissell (Ciò che Ho Trovato) Restituisci l'output in questo formato esatto (nessuna delimitazione con ```; nessuna spiegazione, nessun testo aggiuntivo):

Possedere una macchina affidabile per la pulizia mirata è uno degli investimenti più intelligenti per le famiglie che affrontano fuoriuscite accide...

Read
AUTOMAN Adjustable Garden Hose Nozzle Review - grandgoldman.com

Recensione della Lancia per Tubo da Giardino Regolabile AUTOMAN

Quando si cerca un accessorio affidabile per il tubo da giardino che offra controllo preciso dell'acqua, durata e maneggevolezza confortevole, molt...

Read
HOMESURE Strong Storage Bags Review - grandgoldman.com

Recensione delle Sacche di Conservazione HOMESURE Strong

Nel corso degli anni, recensendo attrezzature per l'organizzazione domestica per Grandgoldman.com, ho scoperto che molte soluzioni di stoccaggio fa...

Read
LEVOIT Core 200S Smart Air Purifier Review - grandgoldman.com

Recensione del Purificatore d'Aria Intelligente LEVOIT Core 200S (Da Non Perdere)

In quanto persona che recensisce regolarmente prodotti per la qualità dell'aria domestica, ho dedicato tempo ad analizzare il Purificatore d'Aria I...

Read
Dreo Velocity Oscillating Tower Fan Review - grandgoldman.com

Recensione della Ventola a Torre Oscillante Dreo Velocity

Quando arriva il caldo estivo o l'aria interna sembra stagnante, un potente ventilatore torre diventa uno degli aggiornamenti di raffrescamento più...

Read
Shark HV302 Rocket Ultra-Light Vacuum Review - grandgoldman.com

Recensione dell'Aspirapolvere Shark HV302 Rocket Ultra-Light

Se stai cercando un aspirapolvere leggero che offra un'aspirazione potente senza l'ingombro di un aspirapolvere verticale tradizionale, l'Aspirapol...

Read