Andy Burnham, the Mayor of Greater Manchester, has expressed opposition to plans allowing regional mayors in England to use new devolved income tax revenues for local tax cuts. Under forthcoming reforms, mayors will retain a portion of the income tax generated within their areas, alongside business rates, providing them with substantial new funds intended to stimulate regional economic growth.
The move, described by the Prime Minister as “transformational,” aims to decentralize power from Whitehall and empower local leaders to invest in projects that boost their economies. However, some regional figures, such as Tees Valley’s Conservative Mayor Ben Houchen, have indicated intentions to use these additional funds to offer tax rebates to residents.
Burnham cautioned against this approach, arguing that the policy’s core purpose is to promote sustained economic growth through investment rather than provide short-term financial relief. He stated that making local leaders “mini chancellors” who can cut taxes risks undermining the policy’s long-term objectives. “If they went down that path that they’re proposing, they wouldn’t have any money to give away the next year because the growth would have stopped,” Burnham said, emphasizing the need to reinvest gains to maintain momentum.
He pointed to Greater Manchester’s experience over the past decade as an example of how retaining a share of local revenues can create a positive cycle of growth and reinvestment. Burnham also highlighted the broader economic context, noting the country’s ongoing challenges with low growth and investment, underscoring the importance of policies aimed at breaking this pattern.
In addition to his comments on local taxation, Burnham addressed plans to reduce jury trials in England and Wales, signaling his intention to maintain juries as a central element of the justice system. Drawing on his experience campaigning for justice related to the Hillsborough disaster, he expressed concerns about proposals that could limit access to jury trials.
Burnham also revealed he plans to visit Dover shortly to observe challenges associated with small boat arrivals firsthand. He expressed openness to discussions with regional mayors and the Home Secretary about devolving powers related to asylum seeker accommodation, including contracts for hotels and houses in multiple occupation (HMOs). He acknowledged that current arrangements are often managed top-down, sometimes without adequate local consultation or notification, and suggested local solutions could be more effective.
Reflecting on his first two weeks as prime minister, Burnham described the role as intense but rewarding. He conveyed a desire to transform political and governmental approaches without resorting to confrontation, aiming instead to create a “circuit-breaker” in how the country is governed.