Editorial | The Guardian

The Guardian view on Labour’s fiscal devolution: the future of Burnhamism will play out in municipal England | Editorial

Editorial — Fri, 30 Oct 2026 17:56:11 GMT

Replacing government grants with revenue streams from taxation will not in itself reduce regional inequalities. But the political implications are radical

Following Wednesday’s budget, the Treasury minister, Torsten Bell, was challenged by the BBC’s Evan Davis on whether its modest series of “breathing space” measures could truly be said to have ended “40 years of neoliberalism”. This line of questioning is becoming a familiar one. Andy Burnham’s ringing declaration of long-term intent is now being regularly deployed by commentators to suggest an emerging gulf between rhetoric and action.

Mr Bell’s response was a good one. Recalling how “Margaret Thatcher in the 1980s hugely hollowed out local government [and] tried to emasculate our big cities”, he called the fiscal devolution roadmap unveiled in the budget a step change and a really big deal.From 2028, mayoral strategic authorities will for the first time receive a share of income tax receipts, and from next year they will be allocated 20% of business rates revenue. That figure will potentially rise to 100% by the end of the decade, while a new overnight visitors levy will add another local income stream.

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