UK Prime Minister Andy Burnham Unveils Landmark Devolution Plan to Shift Power from Westminster

LONDON: British Prime Minister Andy Burnham has unveiled sweeping proposals to devolve political and fiscal powers from Westminster to England’s regional authorities, describing the reforms as the most significant transfer of power in a generation and a cornerstone of his government’s agenda to rebalance the country’s economy.

Under the plan, directly elected regional mayors will retain a share of locally generated business rates from 2027 and a proportion of income tax revenues from 2028, replacing much of the existing system of central government grants. The reforms are intended to provide local leaders with greater financial certainty and enable long-term investment in housing, transport, skills development, and infrastructure.

The government also plans to grant mayors expanded borrowing powers, allowing them to raise funds against future revenue streams for major development projects. Ministers said the proposals would reduce reliance on annual Treasury funding settlements and strengthen local decision-making across England.

Critics, however, have warned that the reforms could widen regional inequalities, arguing that wealthier areas such as Greater Manchester and London may benefit disproportionately from locally retained tax revenues. The government has pledged to introduce an equalisation mechanism to ensure less affluent regions are not disadvantaged and has encouraged areas without elected mayors to establish combined authorities to access similar powers.

The devolution package forms part of Burnham’s broader strategy to decentralise governance, including the establishment of a “Number 10 North” office in Manchester to coordinate regional policy and oversee the implementation of the reforms. The government says further details, including the exact share of income tax to be retained by local authorities, will be announced in the forthcoming Budget.