Burnham Devolution Plan: Mayors Escape Treasury Grip with New 2026

Andy Burnham's new devolution plan aims to free regional mayors from the Treasury's death grip, granting them borrowing powers and a share of local income tax. This transformational shift promises to move decision-making out of Whitehall, empowering local leaders to invest in big projects.

What the Devolution Plan Includes

The plan, announced by Burnham, introduces a 'local first' principle, requiring ministers to justify why powers should remain centralised. From 2028, mayors will retain a portion of income tax generated in their areas, and by April 2027, they'll control business rates worth tens of millions of pounds. These replace existing grants, but leaders argue the long-term certainty transforms their funding.

Key Benefits for Regional Mayors

• Borrowing powers to finance infrastructure projects
• Retention of local income tax share from 2028
• Control over business rates by 2027
• Reduced reliance on ringfenced Treasury handouts
• Ability to improve public transport, housing, and job creation

Comparison: Current vs. Proposed System

Impact on Civil Service and Governance

No 10 stated that Britain's civil service, currently 520,000 strong, will become 'smaller and more strategic' as powers shift. With one in five officials based in London, the plan aims to distribute decision-making across England, where directly elected mayors already cover three-quarters of the population.

Reactions from Local Leaders

Oliver Coppard, Labour mayor of South Yorkshire, praised the plan: "It's really important because it gets us out of the death grip of the Treasury and gives us that long-term certainty around income." Burnham himself emphasised, "Under our plans, more of the taxes raised in a community will stay in that community."

Future of Devolved Powers

Beyond fiscal measures, some close to the PM have called for mayors to oversee schools, GPs, and childcare through health and education commissioners. This would mirror the role of police and crime commissioners, extending local control over public services.

FAQ

Key Takeaways

• Historic power shift from Westminster to regional mayors
• Mayors gain borrowing and tax retention powers
• Local leaders expect transformative funding certainty
• Potential expansion into education and health oversight

This devolution plan marks a significant step towards rebalancing power in the UK, promising more responsive governance and targeted investment in communities.