Full Breakdown
Andy Burnburn Pushes for Mayors to Receive a Share of Income Tax
7/31/2026, 10:07:56 PM
Proposal Overview
Prime Minister Andy Burnham is urging a shift in England’s fiscal architecture by allocating a portion of national income-tax revenues directly to combined authorities and their elected mayors. The plan would give regional leaders a reliable funding stream, enabling long-term investment decisions and tighter coordination of transport, health, policing and social care. Burnham frames the reform as a way to move decision-making to the level where it can be most effective, while leaving truly national responsibilities to Westminster.
Historical Context of English Devolution
Burnham has long criticised the United Kingdom’s “over-centralised” system, arguing that England lags behind other developed nations in devolving power to sub-national units. Successive governments before Labour’s recent tenure repeatedly blocked meaningful fiscal autonomy for city-regions. Recent steps—such as the overnight visitor levy that obliges tourists to fund local infrastructure, and the Integrated Settlement that gives combined authorities greater discretion over spending—are described as the first moves toward a more empowered English devolution model.
Potential Benefits and Challenges
Economic Incentives
Assigning a share of income tax to combined authorities would create a direct financial incentive for local leaders to grow their economies. With predictable revenue, mayors could plan and fund long-term projects, from transport upgrades to housing development, without the uncertainty of annual grant allocations.
Greater Control Over Investment Vehicles
Current national bodies such as the National Wealth Fund, Homes England and the British Business Bank are largely directed from Whitehall, even though they invest in local economies. Burnham’s proposal envisions mayors playing a larger role in deciding where these funds are deployed, potentially through regional growth companies modeled on schemes in London and Greater Manchester.
Integrated Public-Service Delivery
The plan calls for public services to align with the geographic boundaries of combined authorities. By coordinating councils, the NHS, police forces and employment services under a single strategic umbrella, mayors could address cross-cutting issues like temporary accommodation, children’s social care and economic inactivity more effectively than isolated local councils.
“Devolved Diplomacy” and International Competition
Mayors increasingly act as regional ambassadors, attracting foreign investment and forging export partnerships. Burnham argues that, compared with regions in Germany, France and Australia, English mayors receive far less support for such outreach. Granting them fiscal authority would strengthen the UK’s ability to compete globally.
Institutional Reform Required
Realising the proposal would demand a cultural shift within Whitehall. Departments would need to collaborate to ensure policies are coterminous with combined-authority boundaries. The aim is to streamline decision-making, allowing the central government to focus on functions that truly require a national scope.
Implementation Considerations
The proposal would require legislation to define the proportion of income tax allocated to each combined authority and to establish accountability mechanisms. It also calls for redesigning national investment bodies to embed mayoral input and for public-service agencies to adopt “coterminous” operating boundaries. Success hinges on Westminster’s willingness to relinquish traditional control and trust regional leaders with significant financial responsibility.
Outlook
Burnham’s push arrives at an “inflection point” for English devolution. The central question now is whether the UK government will translate the demonstrated capacity of combined authorities to drive investment and improve services into a permanent fiscal framework. If Westminster hesitates, momentum may stall; if it proceeds, England could see a new era of region-led growth and governance.
