What could the devolution plan mean for Manchester's fiscal and strategic control?
Manchester may gain new fiscal powers through devolution plans The devolution roadmap grants mayoral strategic authorities greater economic power, allowing local leaders to control how central government money is spent. Specifically, these authorities will receive a 20% share of locally retained business rates starting in 2027, and will retain 20% of income tax raised locally from 2028-29. Furthermore, these leaders will gain the power to introduce an Overnight Visitor Levy, giving Manchester more direct control over local investment and growth priorities.
- Effect
- Strong positive
- How direct
- 2 steps, 1 inferred by Brind
- When
- Within weeks
- The story
- No new developments lately
How it reaches Manchester
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During the Budget speech, John Healey announced fiscal devolution plans for England, which include granting mayors devolved powers over economic development, transport, and skills. These new mayors will receive a share of income tax and 20% of local business rates from 2028, along with the power to introduce an Overnight Visitor Levy. Separately, the government implemented business rates relief, including an extra 20% for pubs and venues, and increased the small business rates relief threshold to £18,000 for retail, hospitality, and leisure businesses starting April 1, 2027.
The full event6independent outlets -
The government has announced a roadmap for fiscal devolution, which includes plans for mayoral strategic authorities. This process is designed to shift power away from Westminster and give regional leaders more control over how central government funds are spent.
1 report connects these two. Brind only summarizes; follow a link to read the reporting itself.
- icaew.com Wednesday
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system or group of people governing an organized community, often a state
Everything about government -
As part of this devolution, mayoral strategic authorities will receive a 20% share of locally retained business rates from 2027. Additionally, mayors will be able to retain 20% of income tax raised locally starting in 2028-29. This transfer of revenue, combined with the power to introduce an Overnight Visitor Levy, allows local leaders to have more control over how central government money is spent in their communities, enabling them to direct fiscal policy locally.
No report states this step directly. Brind drew it from the reporting on each side of it, so treat it as an informed guess.
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city in Greater Manchester, England
Everything about Manchester
Tap any step to see the evidence behind it.
The facts so far
As reported. Each one links to where it comes from.
- Mayoral strategic authorities will receive a 20% share of locally retained business rates from 2027.icaew.com
- Mayors will retain 20% of income tax raised locally from 2028-29.icaew.com
- Mayors will have the power to introduce an Overnight Visitor Levy.icaew.com, aol.co.uk
- The OECD reported that in 2023, only 4.8 per cent of the national tax take was collected at the local or regional level in Britain.cityam.com
Why it matters
For Manchester and other major regional centers, this shift represents a significant move toward economic self-determination. By gaining control over local revenue streams, the city can better direct fiscal policy to meet local needs and foster regional competition, which tax decentralization is argued to drive.
This move addresses Britain's status as one of the developed world's most centralized states, where only a small percentage of national tax take is collected locally. The policy aims to make the relationship between local leaders and Westminster more symmetrical by giving them commercial discipline through control over revenue.
What we don't know yet
- How will the implementation of the new strategic authority structure affect existing local government functions?
- What specific criteria will determine which local leaders are eligible to implement the Overnight Visitor Levy?
Is this still moving?
- Reports
- 7
- Developments
- 13
- Repetition
- 43%
What would change this answer
Who else could feel it
Other possible ripples from the same event.
- LGCAlready happeningLGC's capacity review is central to assessing readiness for England's devolution plans
- House of CommonsLikelyDevolution plan may reduce the House of Commons' central legislative control over taxation
- John HealeyPossibleDevolution plan may shift John Healey's policy focus away from central government control
Reporting
- icaew.comWednesday
- lichfieldlive.co.ukWednesday
- cityam.comSep 17
- aol.co.ukSep 10
- lgcplus.comAug 5
- morningadvertiser.co.ukAug 4
Keep going
Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.