Andy Burnham Announces Devolution Plan to Shrink Central Government

Prime Minister Andy Burnham announced a broad strategy for a "devolution revolution" to combat regional inequalities and end four decades of neoliberalism. The plan, which he described as "Manchesterism," seeks to shrink the central government by transferring powers, resources, and functions to local regions to ensure decisions are made locally.

Key financial measures include replacing regional grants with a share of local income tax and business rates, as well as introducing a new local tourist tax to incentivize growth. These funding freedoms come with increased local responsibilities for policing, housing, transport, health, and education. Additionally, the plan increases the cost threshold for local transport projects that can proceed without central government approval from £200 million to £500 million.

Chancellor John Healey expressed support for the initiative, stating that local leaders are best positioned to understand the specific investment and transport needs of their residents and employers.