Burnham's Devolution Plan: Mayors to Receive Share of Income Tax Revenue in England
Overview of Burnham's Devolution Initiative
Introduction to the Devolution Plan
LONDON, July 30 (Reuters) - Andy Burnham will give mayors in England a share of income tax revenue for the first time as part of the new prime minister's push to devolve power away from London and decentralise the British state.
Political Motivation and Background
Burnham, himself a former mayor of Greater Manchester, has made it an early political priority to extend devolution and give powers away from the Westminster government he now runs, empowering regional mayoralties instead.
Establishment of Number 10 North
He has established Number 10 North, a Manchester outpost of his Downing Street office, to co-ordinate the devolution push, with the aim of delivering jobs and growth across the country.
Burnham's Perspective on Devolution
Burnham said he knew what it was like "to be ignored by politicians in Westminster" and that he would not "make that same mistake now I'm PM".
Details of the Revenue Sharing Plan
Retention of Local Tax Revenues
"Under our plans, more of the taxes raised in a community will stay in that community. Soon, every local leader will have the power and resources to improve public transport, build homes and create jobs," he said in a statement.
Implementation Timeline and Equalisation
Burnham's office said that mayors would begin receiving a "greater share of locally generated revenues" next spring, though relative local needs will be taken into account to equalise funding across the country.
Business Rates and Fiscal Budget
This will start with business rates, which Burnham's government has already cut for pubs, and his office said further details on that and income tax retention would be set out in a fiscal budget due later this year.
Scope and Limitations of the Announcement
Geographical Coverage
The announcement will only cover England, though the government said it would work with devolved governments in Scotland, Wales and Northern Ireland to try to deliver similar outcomes.
Current State of Devolution in England
Devolution in England is patchy, however, with metro regions such as Greater Manchester having mayors with substantial powers while around half the population is not covered by such mayors.
(Reporting by Alistair SmoutEditing by Gareth Jones)
