Think Tank Report Calls for Fiscal Devolution and Mayor Funding in England
What happened
A think tank report published on September 23, 2026, proposed that England's mayors be given a 5% share of income tax revenues. This proposal would shift an extra £3.8 billion annually from Whitehall, effectively doubling the funding under mayoral control. The report suggests this funding could be used by local leaders to invest in transport, housing, and regeneration by transferring budgets from central departments.
From localgov.co.uk
Why it matters
The report, which was endorsed by former Treasury minister Lord Jim O'Neill, supports Prime Minister Andy Burnham's plans to extend fiscal devolution to all mayors by 2028. The recommendations include establishing regional audit offices, granting borrowing powers to experienced authorities, and implementing a tariff-and-top-up system to balance funding between regions. Lord O'Neill noted that without fiscal devolution, local leaders lack the freedom to enact meaningful change.
From localgov.co.uk
Who's involved
- EnglandThe geopolitical state of England, the primary focus of the devolution proposals.
- WhitehallThe administrative center of the central government of England.
- Andy BurnhamThe politician whose plans are supported by the think tank findings.
- Department for TransportA major UK government ministerial department whose funding structure is targeted for change.
- Cabinet OfficeA central government department whose policy authority is subject to potential shifts.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Greater ManchesterSpeculative
Greater Manchester could become a direct recipient of transferred income tax revenues and budgets.
- Musgrove Park HospitalSpeculative
Increased local control and investment potential could improve the funding base for services like Musgrove Park Hospital.
Keep exploring
The entities involved
-
England
country in north-west Europe, part of the United Kingdom
-
Whitehall
road in the City of Westminster, in central London
Nothing else this week.