Burnhamism’s future is set to be played out across municipal England

By the Editorial Team · Saturday, October 31, 2026

The UK Treasury has unveiled a fiscal devolution roadmap granting mayoral strategic authorities in England increased control over income tax and business rates beginning in 2028, alongside new local revenue streams like an overnight visitors levy. This shift aims to address regional inequalities and empower local governments, but its success depends on further funding decisions and the capacity of councils to manage their expanded responsibilities.

Following the recent budget announcement, the future of local government in England is set to undergo significant transformation, with new fiscal measures aimed at reversing decades of centralisation and regional inequality. The Treasury has introduced a fiscal devolution roadmap that marks a substantial shift in the funding and autonomy granted to mayoral strategic authorities across municipal England.

Starting in 2028, these authorities will receive a portion of income tax receipts for the first time. Additionally, from next year, local governments will be allocated 20% of business rates revenue, with the potential for this figure to rise to 100% by the end of the decade. A further new revenue stream will come from the introduction of an overnight visitors levy. These structural changes are expected to recalibrate the relationship between local government and the central state, which has historically been highly centralised.

The shift is seen by supporters as a vital step towards addressing long-standing regional disparities and supporting local priorities. Andy Burnham, the mayor of Greater Manchester, has championed these moves as part of a broader ambition to “roll back” policies from the 1980s, particularly those which diminished the power and resources of local authorities. This agenda aims to empower councils to plan and borrow against more predictable income streams, potentially enabling more tailored and effective responses to local needs.

However, questions remain about the practical implementation of these reforms. Details to be clarified in next year’s spending review will be critical, especially concerning mechanisms to ensure that areas with smaller tax bases do not lose out financially. The Local Government Association has warned of a looming £7 billion funding shortfall for councils by 2028-29, highlighting the challenges faced by local authorities, which are already struggling to meet statutory obligations, notably in social care.

While the budget’s measures represent a clear break from previous governance models, further steps will be necessary to realise the broader goals of reducing inequality and improving community services. Observers note that local authorities will need increased capacity and investment to assume control over sectors such as care, housing, and utilities, moving away from the current reliance on outsourced services and private-sector management.

Critics caution that devolution alone will not resolve entrenched disparities or restore public services without sustained commitment and resources. Nevertheless, proponents argue that shifting power towards those with in-depth local knowledge could foster more equitable and community-oriented development. The Treasury minister Torsten Bell contrasted the current approach with the era of Margaret Thatcher, whose policies undermined local government authority in the 1980s, describing the new plan as a “step change” in governance.

As these reforms take shape, the coming years will be pivotal in determining whether English local government can embark on a genuine renaissance, one that balances public and private interests and supports “good growth” across the regions.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.