Andy Burnham, the mayor of Greater Manchester, is spearheading a devolution plan that grants English regional mayors unprecedented fiscal autonomy. Starting in 2028, mayors will retain a portion of income tax collected in their areas. By April 2027, they will also control business rates revenue totaling tens of millions of pounds annually.

The reform aims to liberate local leaders from what Burnham describes as the Treasury's "death grip," enabling mayors to borrow for major infrastructure and economic projects without seeking approval from Whitehall. Currently, English regions depend heavily on central government grants for capital investment, forcing local authorities to navigate bureaucratic constraints that slow development.

This represents a fundamental shift in Britain's centralized governance model. Unlike Scotland and Wales, which already possess significant tax-raising powers, English regions have historically lacked fiscal independence. The new framework allows mayors to leverage locally generated revenue for long-term borrowing, giving them flexibility to fund transit systems, housing, and business development.

Local leaders characterize the initiative as transformational. By controlling business rates and income tax revenue, mayors gain leverage to negotiate with private investors and direct funds toward regional priorities rather than following Treasury-set formulas. The plan addresses longstanding complaints that London dominates resource allocation while northern and midlands authorities struggle with underfunding.

The devolution agenda faces implementation challenges. Coordination between mayors across different regions, establishing borrowing limits, and maintaining fiscal discipline will require careful oversight. Treasury officials may resist wholesale power transfers, particularly regarding income tax, which traditionally funds central government services like the NHS.

However, the political momentum is clear. Combined mayoral control over income tax and business rates gives regional leaders tangible authority over economic development. This model aligns with similar devolution efforts in Wales and Scotland, gradually narrowing England's democratic deficit regarding local fiscal control.

The changes take effect gradually, with business rates transfers beginning sooner than income