Angela Rayner is advising Greater Manchester Mayor Andy Burnham on plans to devolve tax-raising powers to local mayors across England, sources indicate. The move revives proposals first advocated by Rayner when she served as local government secretary and former deputy prime minister, aimed at granting mayors greater control over business rates and other local taxes.

Burnham outlined the initiative during a speech on Monday, describing it as a transformative effort to redistribute power away from Whitehall and promote equitable economic growth nationwide. He asserted that devolving fiscal authority to local leaders would deliver “good growth in every postcode” and described the plan as the “biggest rebalancing of power our country has seen.”

Supporters of fiscal devolution argue that empowering regional politicians to set taxation and spending priorities will better reflect local needs than decisions made centrally by civil servants. Rayner has been a longstanding advocate for such policies, having previously lobbied Labour leader Sir Keir Starmer to grant more authority to metropolitan mayors. However, her efforts were resisted by then-shadow chancellor Rachel Reeves, who expressed concern over potential loss of Treasury control and the risk of fragmented tax policy.

Burnham’s proposals include allowing mayors to set business rates for their cities—a power traditionally held by central government—and the ability to levy tourist taxes on overnight stays in hotels and short-term rentals such as AirBnBs. Rayner championed similar measures before stepping down from her ministerial role last year following a dispute over an underpaid stamp duty charge.

These policies have faced criticism from hospitality industry groups and some government officials, who argue that local elected officials might be less accountable than the Treasury in managing taxation and public spending. Nonetheless, Burnham and Rayner emphasize the potential for fiscal devolution to replace what they describe as the “cap-in-hand approach” and “adversarial” competition among towns and cities for limited central funding.

Rayner has urged for an “economy that works for the whole country” and advocated giving citizens more direct control over decisions affecting their communities, themes echoed in Burnham’s recent speeches. Given her key role in shaping the policy platform, Rayner is expected to take a prominent position within Burnham’s leadership team if he succeeds Sir Keir Starmer as Labour leader, which is anticipated within the next three weeks. Speculation suggests she may resume a ministerial post related to housing, communities, or even take on financial responsibilities—potentially as chief secretary to the Treasury—to leverage her expertise in advancing fiscal devolution amid resistance from Treasury officials.

Burnham is reportedly finalizing his government blueprint and cabinet appointments rapidly, with names such as Ed Miliband, Shabana Mahmood, and Wes Streeting being discussed as possible chancellors under his prospective leadership.