Burnham accused of imposing ‘top–down’ devolution
Andy Burnham’s devolution agenda has been slammed over its “top down” approach after the Prime Minister unveiled new plans to share income tax revenue with local leaders.
Burnham, himself a former Manchester mayor, said regional leaders in England will begin receiving a “greater share of locally generated revenues” next spring as part of his push to devolve power away from London and decentralise the British state.
Announcing the plans, the prime minister 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”.
“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.
The government is yet to confirm how big the share of income tax and business rates revenue that mayors would receive.
A white paper is set to be published alongside the Budget this year that would outline reforms in full and provide a timetable for implementation. The new economic framework would allow communities to “directly benefit when their economy grows”, according to Number 10.
The plans have triggered backlash from the Conservative party.
Sir James Cleverly, the shadow local government secretary, suggested that Burnham had put too much focus on his experience as mayor of Greater Manchester, claiming that the new approach to transferring power from Whitehall was instead “sidelining local councils and ignoring local identities”.
“Andy Burnham is right to want to encourage growth in all communities. But his top-down Manchesterism will lead to higher taxes, with no guarantee of better outcomes for local people,” Cleverley said.
“Devolution cannot be imposed from above – it can only work if it’s done in cooperation with local people. But Labour’s regionalist approach takes power away from local communities.”
Cleverly takes on Burnham
The Tories’ criticism draws on questions over whether power may lie with council leaders or leaders of combined authorities.
While the party created the combined authority in Greater Manchester when it was in government, which led to Burnham being elected as the region’s first mayor in 2019, party sources said locals had not given consent to devolution plans.
Tories also oppose power being handed to regional bodies rather than more locally-focused authorities, citing Cornwall as an area which has previously opposed being joined up with Devon under a larger local authority.
Cleverly’s comments are also significant given rumours of his bid to stand as a Tory candidate for the London mayoralty. One Tory source linked to City Hall told City PM he was one of the strongest potential candidates for the election expected in 2028. A party spokesman said they would not comment on the matter.
Sir Mel Stride, the shadow chancellor, also hit out at Burnham making “big claims while being very short on detail”.
“Unless Burnham is going to launch another tax raid elsewhere, borrow even more, or make cuts to central government grants, there is no new money being announced here,” Stride said.
“If local areas which see stronger growth are to end up with more funding, that could mean those who lose out are precisely those areas which have seen weaker local economies over recent years – the opposite of what Andy Burnham claims he wants to achieve.”
‘Growth-enhancing’
Economists have suggested previously the plans could deliver a boost in growth regionally. Oxford Economics researchers predicted that devolution by offering mayors the ability to retain tax receipts was more effective than redistributing spending, which “may even reduce” growth by starving more productive cities of cash.
“Extensive fiscal devolution, granting significant revenue-raising powers through taxation or debt issuance, potentially offers the most meaningful option for raising long-term growth,” they said. “It gives local policymakers both the ability and incentive to pursue growth-enhancing reforms.”