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Burnham to free mayors from ‘Treasury death grip’ with new devolved powers
United Kingdom🏛️ PoliticsLean Progressive2 days ago

Burnham to free mayors from ‘Treasury death grip’ with new devolved powers

The UK government, led by Prime Minister Andy Burnham, has announced plans to grant England's regional mayors greater financial autonomy by allowing them to retain a portion of income tax and business rates generated within their areas. Starting in 2028, mayors will keep a share of income tax and by April 2027 will also receive business rates totaling tens of millions of pounds. These funds will replace existing grants rather than supplement them, giving mayors more control over local spending. Burnham emphasized that this move represents 'the biggest transfer of power from Westminster in a generation,' aiming to reduce reliance on Treasury handouts and enable mayors to fund large-scale projects like infrastructure and housing. The policy includes a 'local first' principle requiring ministers to justify keeping powers in Whitehall. Experts note that this change could allow combined authorities to secure 30-year loans for major projects, potentially unlocking developments such as transport infrastructure in cities like Manchester.

Andy Burnham has unveiled plans to grant England’s regional mayors a share of income tax and business rates collected within their areas, marking a major shift in the balance of power between central government and local authorities. The reforms, which will begin in early 2028, aim to give mayors greater autonomy to invest in local infrastructure, public services, and economic growth, moving away from reliance on centralized Treasury grants. Under the new system, mayors will retain a portion of the taxes generated in their regions, with the exact proportions to be determined in a forthcoming white paper and budget announcement later this year. The initiative forms part of Burnham’s broader devolution agenda, which he has framed as a way to “take power out of Westminster and carry it into every postcode in the country.” During his tenure as mayor of Greater Manchester, Burnham advocated for increased local control over economic development, citing the success of Manchester’s growth strategies, which included investments in transport and infrastructure. His approach has drawn comparisons to the Northern Powerhouse vision first outlined by former Chancellor George Osborne nearly a decade ago, which aimed to stimulate regional growth through improved connectivity and shared prosperity. The new system will replace existing grants with a mechanism that allows mayors to retain a percentage of income tax and business rates, effectively shifting the financial responsibility for local projects from the Treasury to local leaders. While the exact share of taxes to be retained remains unspecified, reports suggest that mayors could potentially receive up to 2.5 percent of the 20p basic rate of income tax. For instance, London could see an estimated £2.3 billion in retained income tax, while areas like Manchester and the West Midlands could gain hundreds of millions. These figures highlight the uneven distribution of benefits, prompting concerns that wealthier regions may disproportionately benefit from the reforms. Despite the potential for localized economic empowerment, Burnham has explicitly ruled out the possibility of mayors using the new powers to implement direct tax cuts for residents. In a heated exchange with Conservative mayor Ben Houchen of Tees Valley, who proposed using the income tax share to provide tax rebates to households, Burnham argued that such a move would undermine the core purpose of the reforms. “This is not about making them mini-Chancellors of the Exchequer,” he stated, emphasizing that the goal is to foster sustainable growth rather than short-term fiscal relief. Burnham warned that allowing mayors to distribute tax rebates could lead to a cycle of short-term gains followed by stagnation. “You can’t just get a little bit of growth and then abandon the investment,” he explained. “Then you won’t grow.” His stance reflects a broader concern among policymakers that immediate financial windfalls could derail long-term development efforts. Instead, the focus is on incentivizing mayors to prioritize investment in infrastructure, skills training, and economic diversification, areas where sustained growth is more likely to materialize. The reforms also introduce new mechanisms for local authorities to manage their finances, including the ability to borrow against projected future income to fund large-scale projects. This flexibility is particularly significant for areas like Greater Manchester, where long-term planning has historically been constrained by the need for repeated Treasury approvals. By enabling mayors to secure private financing for ambitious projects, the changes aim to accelerate progress on initiatives such as expanded transport networks and housing developments. However, critics argue that the policy lacks clarity and could exacerbate regional disparities. Opposition voices, including Conservative shadow local government secretary James Cleverly, have criticized the plan as a “hypocrisy” of Labour’s top-down devolution agenda, accusing the government of limiting local discretion while claiming to empower communities. Meanwhile, some mayors, including those in the Tees Valley and Greater Lincolnshire, have expressed interest in using the new powers to offer tax relief to residents, though Burnham has made it clear such proposals will not be supported. The government has also emphasized the importance of an equalization system to prevent wealthier regions from gaining disproportionate advantages. Officials have noted that the current structure of business rates and income tax distribution already favors certain areas, and the new framework will incorporate adjustments to ensure that less economically vibrant regions are not left behind. However, the specifics of these adjustments remain under review, with final details expected to emerge during the autumn budget. As the reforms take shape, the debate over their impact on regional equity and economic growth continues. With the potential for significant financial shifts and new levels of local control, the success of Burnham’s devolution plans will depend on how effectively mayors navigate the complexities of managing newfound financial independence while maintaining alignment with national priorities. The coming months will be critical in determining whether this bold experiment in local governance can deliver the promised transformation.

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8 reports

BBC News (UK) logoBBC News (UK)State / PublicCenterFactual 90Objective 853 days ago
Andy Burnham to give regional mayors share of income tax

Prime Minister Andy Burnham announced plans to grant city region mayors a share of income tax revenue for the first time, aiming to decentralize power from Westminster to local leaders. The proposal includes allowing mayors to retain portions of business rate collections and increase control over services like housing and transport. Details on the exact tax shares remain pending until the autumn budget. Opposition parties criticized the lack of specifics, warning weaker economies might suffer. Burnham emphasized bringing decision-making closer to communities, while officials noted strategic authorities, collaborative bodies of local councils, could manage these powers without requiring mayors. The UK currently collects only 5.8% of national taxes locally, significantly lower than nations like France and the U.S., highlighting the centralized nature of UK fiscal systems.

Bias read (Center): The article presents both the government's initiative and opposition concerns without overtly favoring either side. It reports on the policy proposal, quotes both supporters and critics, and provides factual background without clear ideological slant. While the topic is politically charged, the tone

Why factuality (90): The article provides accurate information about the devolution plans, including the timeline for implementation and the involvement of Chancellor John Healey. It aligns with the cross-source consensus and avoids speculative claims.

Why objectivity (85): The article remains largely objective, quoting both the government and opposition views. It uses neutral language while explaining the policy and its implications without overt bias.

The Guardian (UK) logoThe Guardian (UK)IndependentCenterFactual 85Objective 803 days ago
Andy Burnham to set out devolution plan amid criticism it won’t benefit regions equally – UK politics live

The UK government is preparing to unveil a significant devolution plan, granting English regional mayors direct access to income tax revenues starting in 2028, replacing current central grants. This shift aims to reduce reliance on Treasury funding and allow mayors to borrow privately for infrastructure investments. By April 2027, mayors will also retain a portion of business rates revenue, increasing control over local services like housing and transport. While the move is framed as empowering local leaders, critics argue it risks exacerbating economic disparities between regions, particularly if wealthier areas like London benefit disproportionately. The government has stated it will develop tailored proposals for Scotland, Wales, and Northern Ireland, though details remain pending.

Bias read (Center): The article presents both the government's framing of the devolution plan as empowering local leaders and criticisms from opposition figures and some mayors about potential regional inequality. It includes quotes from multiple perspectives, including the Prime Minister, a Conservative critic, and a

Why factuality (85): The article accurately reports the proposed changes to devolution, including allowing mayors to keep shares of income tax and business rates, replacing existing grants. It cites sources and aligns closely with the cross-source consensus, though it lacks specific figures on the amount of tax shares.

Why objectivity (80): The article maintains a relatively neutral tone, presenting both the government's perspective and criticisms from the Conservatives. However, it uses terms like 'transformational' and 'biggest transfer of power' which slightly lean towards positive framing of the policy.

The Independent logoThe IndependentIndependentProgressiveFactual 85Objective 803 days ago
Mayors allowed to keep share of taxes collected in their area as part of Burnham’s devolution revolution

Prime Minister Andy Burnham has proposed allowing English mayors to retain a portion of taxes collected within their regions as part of a broader devolution initiative aimed at decentralizing power from Westminster. This move is intended to empower local leaders to focus on improving public transport, housing, and employment opportunities. While the proposal does not grant mayors the authority to raise taxes independently, unlike Scotland and Wales, the government will maintain an equalization system to ensure underfunded areas still receive support. Details of the reform will be outlined in a forthcoming white paper during Chancellor John Healey's upcoming budget. Burnham emphasized that this policy aligns with his vision of bringing decision-making closer to citizens and fostering regional economic growth.

Bias read (Progressive): The article frames the devolution plan as a progressive shift toward empowering local governance and reducing central control, using language that emphasizes grassroots empowerment and 'bringing power home.' It highlights Burnham's personal experience of being overlooked by national politicians, a叙事

Why factuality (85): The article accurately describes the devolution plan, including the retention of an equalization system and the focus on economic growth. It aligns with the cross-source consensus and provides relevant context.

Why objectivity (80): The article maintains a balanced tone, presenting the government's rationale alongside the broader implications of the policy. It avoids strong emotive language and keeps the narrative focused on facts.

The Guardian (UK) logoThe Guardian (UK)IndependentProgressiveFactual 85Objective 803 days ago
Burnham to free mayors from ‘Treasury death grip’ with new devolved powers

The UK government, led by Prime Minister Andy Burnham, has announced plans to grant England's regional mayors greater financial autonomy by allowing them to retain a portion of income tax and business rates generated within their areas. Starting in 2028, mayors will keep a share of income tax and by April 2027 will also receive business rates totaling tens of millions of pounds. These funds will replace existing grants rather than supplement them, giving mayors more control over local spending. Burnham emphasized that this move represents 'the biggest transfer of power from Westminster in a generation,' aiming to reduce reliance on Treasury handouts and enable mayors to fund large-scale projects like infrastructure and housing. The policy includes a 'local first' principle requiring ministers to justify keeping powers in Whitehall. Experts note that this change could allow combined authorities to secure 30-year loans for major projects, potentially unlocking developments such as transport infrastructure in cities like Manchester.

Bias read (Progressive): The article frames the policy as a progressive shift toward decentralization and local empowerment, emphasizing reduced reliance on central government control. It highlights the potential benefits for local governance and economic development, using positive language around 'transformational' plans,

Why factuality (85): The article accurately summarizes the devolution plan, including the 'local first' principle and the potential expansion of mayoral roles. It aligns with the cross-source consensus and provides contextual background.

Why objectivity (80): The article maintains a balanced approach, discussing both the government's goals and the potential challenges. It avoids taking sides and focuses on explaining the policy's implications.

The Independent logoThe IndependentIndependentCenterFactual 80Objective 753 days ago
What Andy Burnham’s new tax sharing plans could mean for your region

Andy Burnham, the newly elected Prime Minister of the United Kingdom, has announced plans to allow mayors in England to retain a portion of taxes collected in their regions. This initiative aims to decentralize power by giving mayors control over income tax revenues, marking the largest transfer of authority from Westminster in decades. While specific financial allocations remain unclear, the proposal could provide billions to local governments, though this would likely be offset by reduced central government grants. Mayors would gain greater autonomy in managing funds for public services such as transportation, housing, and employment. The plan includes expanding existing trials where local authorities retain 100% of business rates, with a portion allocated to mayors. However, the UK remains significantly less fiscally devolved compared to other G7 nations.

Bias read (Center): The article presents the announcement of tax-sharing reforms in a balanced manner, highlighting both the potential benefits to local governance and the possible trade-offs with central government funding. It does not exhibit overtly biased language or selective sourcing, offering context about the G

Why factuality (80): The article accurately outlines the devolution plan and its potential impact on different regions. It references a think tank report but does not provide enough detail on the exact funding models or implementation timelines.

Why objectivity (75): The article presents the policy in a generally neutral manner, focusing on the potential benefits and challenges. However, it leans slightly toward supporting the government's vision of empowering local leaders.

iNews logoiNewsIndependentCenterFactual 80Objective 753 days ago
Burnham’s income tax revolution is a gamble – but here’s why it works

Andy Burnham, now Prime Minister, aims to shift power away from central government by granting regional mayors greater control over local finances, including income tax and business rate revenues. This approach, rooted in the concept of devolution, seeks to empower local leaders to invest in their regions' economic growth without relying on directives from Whitehall. Burnham's strategy builds on past successes like Manchester's infrastructure developments, which were driven by long-term planning and local decision-making. The plan includes allowing mayors to potentially distribute funds directly to households through tax rebates, though concerns remain about accountability and whether mayors should raise more revenue themselves. The initiative aligns with the broader 'Northern Powerhouse' vision, aiming to fund regional infrastructure through localized tax retention.

Bias read (Center): The article presents Burnham's policies as a pragmatic attempt to decentralize power and improve regional governance. It highlights both potential benefits and challenges without overtly favoring one side. The framing remains balanced, acknowledging the risks while emphasizing the strategic logic of

Why factuality (80): The article accurately captures the essence of the devolution plan and its significance within the broader political landscape. It discusses the potential risks and opportunities associated with the policy.

Why objectivity (75): The article presents a somewhat analytical view of the policy, highlighting both its potential and the questions it raises. While it remains mostly neutral, it occasionally implies skepticism about the effectiveness of the approach.

Daily Mirror logoDaily MirrorIndependentCenterFactual 80Objective 702 days ago
Andy Burnham says extra cash for mayors should be used to 'empower' regions - not for short term tax cuts

Prime Minister Andy Burnham has stated that new powers allowing England's mayors to retain a portion of locally generated income tax and business rates should be used to drive economic growth and investment in their regions, rather than for short-term tax cuts. Burnham emphasized that the goal is to create a sustainable model where increased economic activity leads to reinvestment, ensuring continued growth. He criticized suggestions by Conservative mayor Ben Houchen to use the funds for direct tax rebates, arguing that such measures could undermine long-term development. Burnham also addressed other policy areas, including his opposition to reducing jury trials in England and Wales, citing concerns raised by legal professionals and some Labour MPs.

Bias read (Center): The article presents both sides of the debate regarding the use of devolved tax powers, Burnham's emphasis on long-term growth versus Houchen's suggestion of short-term tax relief. The tone remains balanced, quoting both figures and explaining the reasoning behind Burnham's stance without overtly slw

Why factuality (80): The article accurately conveys the core elements of the devolution plan, including the restriction on mayors using funds for tax cuts. However, it lacks specific details on the extent of the tax shares and the exact mechanisms of the policy.

Why objectivity (70): The article shows a slight bias in favor of the government's position, particularly in emphasizing the PM's stance against tax cuts. It frames the opposition's proposal as a deviation from the intended purpose of the policy.

Daily Mail logoDaily MailIndependentProgressiveFactual 75Objective 653 days ago
Fury as Andy Burnham BLOCKS mayors from giving local households a tax rebate despite his devolution drive

Andy Burnham, the Deputy Prime Minister and former mayor of Greater Manchester, has blocked proposals by Tory mayors, including Tees Valley's Ben Houchen, to implement tax rebates for local residents using newly devolved powers. The Prime Minister announced that regional mayors would retain a portion of income tax and business rates, positioning this as a major shift of power away from central government. Burnham argued against tax cuts, emphasizing a growth-focused approach that prioritizes investment over immediate financial relief. Houchen criticized the decision as contradictory to the principles of devolution, arguing that the move undermines the intent to allow local authorities to directly benefit residents. Other mayors, such as Reform UK's Luke Campbell and Andrea Jenkyns, have expressed interest in similar rebate schemes, highlighting ongoing debates over the purpose and scope of devolved powers.

Bias read (Progressive): The article frames the dispute as a conflict between Burnham's centralized, growth-oriented approach and the Tory mayors' desire for direct fiscal benefits to residents. The language emphasizes Burnham's opposition to 'mini-chancellors' and 'tax grabs,' which aligns with left-leaning critiques of un

Why factuality (75): The article accurately reports the main points of the devolution plan and the conflict with Ben Houchen's proposal. However, it lacks detailed explanations of the policy mechanics and omits some nuances present in other sources.

Why objectivity (65): The article exhibits a clear bias against the PM's decision, using phrases like 'furious backlash' and 'blocked' which frame the situation as a negative outcome. It emphasizes the opposition's viewpoint more prominently.

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