Andy Burnham's Devolution Plan: Unbundling England's Centralised 2026

Andy Burnham's critique of England's centralised state highlights how the past 40 years of economic policy have left regions like Yorkshire and the Midlands without the powers to recover from deindustrialisation. His plan to unbundle English government is a radical and welcome step towards a more balanced economy.

Why England's Centralisation Matters

England is among the most centralised countries in the rich world. This concentration of power in London has historically left other regions vulnerable to economic shocks. When factories and pits closed in the 1980s, regions lacked the financial and institutional tools to build replacement industries.

Centralisation did not just close factories; it stifled local innovation and resilience. The result is a persistent north-south divide, with London and the South East thriving while other areas struggle. Burnham's plan directly addresses this imbalance.

Three Pillars of Burnham's Devolution Programme

1. Mayoral-Led Regional Governance

The first pillar involves detailed proposals to create a decentralised state organised around mayors as key economic actors. Pan-regional agencies could emerge for transport, energy, and investment, crossing mayoral boundaries. Regions without mayors can opt for stronger or weaker powers.

2. Retaining Tax Revenues

The second pillar allows mayors to keep income-tax and business-rate revenues. The upcoming budget and spending review will decide the exact amounts. This fiscal autonomy is crucial for long-term planning and investment.

3. Equalisation Duty

The third pillar, modelled on Germany's Basic Law, requires English regions to pursue equivalent living conditions. A mayoral authority would receive a share of tax revenues but the national government would redistribute resources to poorer areas, ensuring comparable services and investment capacity.

Data: The Fiscal Reality

Without equalisation, disparities would widen. For instance, if mayors received 2.5% of the 20p basic rate of income tax, London would get £2.3bn in 2026-27, while Hull and East Yorkshire would get only £135m. This stark contrast underscores the need for redistribution.

Key Takeaways

• England's centralisation has hindered regional economic resilience.
• Burnham's plan empowers mayors with fiscal and policy tools.
• Equalisation is essential to avoid widening regional disparities.
• Germany's Basic Law offers a model for balanced devolution.
• This plan could reshape England's economic geography.

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