The UK Prime Minister announced today that regional mayors, including Greater Manchester's Andy Burnham, will receive a share of income tax revenue collected in their areas. The move, framed as a devolution of fiscal power, aims to give 'every postcode' more control over local spending. But critics say the plan is short on detail.
How the plan works
Under the proposal, mayors in regions like Greater Manchester will get a portion of the income tax generated within their boundaries. The Prime Minister said the policy would 'put power in the hands of every postcode,' signaling a shift away from centralized Westminster control. The exact percentage and implementation timeline have not been disclosed.
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Critics want more specifics
Opponents argue the announcement lacks the granularity needed to assess its real impact. Without clear numbers on revenue shares or how the funds will be distributed, local leaders are left guessing. The vagueness has drawn comparisons to previous devolution promises that fell short of expectations.
A centralization move in disguise?
Despite the rhetoric of local empowerment, the mechanism ties mayors' budgets directly to central government tax collection. This could make them dependent on Westminster's fiscal policies, reducing genuine autonomy. In contrast, true fiscal decentralization would involve independent tax-raising powers. By co-opting mayors into the central tax system, the government may actually dampen the appeal of decentralized financial tools like cryptocurrencies, which thrive on independence from state-controlled systems.
The government is expected to release further details in the coming weeks. For now, mayors like Andy Burnham are left waiting to see how much of their local income tax they'll actually get to keep.
