Labour Prime Minister Keir Starmer has pledged to hand a portion of income tax revenues directly to regional mayors, marking a shift toward devolved fiscal control across England. The policy aims to redistribute power from Westminster to local authorities, with Starmer framing it as empowerment for "every postcode" in the country.
Andy Burnham, the Mayor of Greater Manchester, stands to benefit substantially from this arrangement, gaining direct access to tax revenues that currently flow entirely to central government. The move represents Labour's attempt to address long-standing regional inequality and give local leaders genuine financial autonomy over spending priorities.
However, the proposal has drawn immediate criticism for its vagueness. Opposition figures and policy analysts note that the government has released minimal detail about implementation, revenue splits, and which taxes would transfer to regional control. Questions linger about whether the scheme covers all regions or only those with elected mayors, and how much fiscal responsibility mayors would actually hold versus central oversight.
The announcement reflects broader Labour efforts to rebrand devolution as a core policy agenda. Starmer has positioned regional empowerment against what he describes as years of Westminster centralization under previous Conservative governments. The policy aligns with Labour's "levelling up" counter-narrative, though critics argue the actual mechanism for reducing regional disparities remains unclear.
Burnham, a vocal advocate for Greater Manchester's autonomy, has already emerged as a key figure in these conversations. His relationship with central government will likely shape how this policy evolves in practice. Whether other regional mayors receive equal backing, or whether London and wealthy southeastern regions dominate negotiations, remains unspecified.
The absence of concrete timelines and funding formulas suggests this plan exists more as a direction statement than a finalized policy. Implementation details will define whether this becomes genuine fiscal devolution or symbolic gesture politics.