Prime Minister Andy Burnham outlined plans to grant English mayors greater control over local finances during a visit to a family centre in Sheffield on Friday. The proposed reforms would enable mayors and local authority leaders to retain a portion of income tax and business rates collected within their jurisdictions to fund community projects.
The initiative, described by Burnham as a "devolution revolution," aims to provide local leaders with increased financial autonomy to address regional needs directly. Among the key changes is a streamlined approval process for transport infrastructure projects. Transport Secretary Heidi Alexander highlighted that schemes costing up to £500 million would no longer require consent from central government, reducing bureaucratic delays.
“Locally funded transport schemes up to £500 million no longer need Whitehall approval, meaning fewer projects get bogged down by bureaucracy, and you get the services that make your life easier,” Alexander said.
The reforms are intended to accelerate the development of new tramways, roads, and light rail systems to enhance connectivity and support economic growth at the local level.
Meanwhile, political developments continue in Greater Manchester, where Labour’s Bev Craig and Sian Astley of Reform UK are heading into a run-off election to determine who will succeed Burnham as mayor for the remainder of the term. Burnham, who has been a prominent advocate for expanded local government powers, is stepping down from the position after assuming the office of Prime Minister.
The proposed financial devolution marks a significant shift in how local services and infrastructure projects are funded and managed, with the government emphasizing the potential for increased efficiency and responsiveness to community priorities. However, some critics have warned that the changes may lead to challenges in coordination between local and central authorities, although no official opposition statements have been recorded.
