𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

More than 25 million Brits avoided planes and ferries this summer, and enjoyed a holiday here in the UK instead. But so-called staycations are to become more expensive – thanks to Andy Burnham’s plan to revolutionise the way England is governed. He is promising “the biggest redistribution of power this country has seen”. The Prime Minister wants to shift power out of Whitehall and hand it to regional mayors.

This includes what the Government calls “fiscal devolution”. In everyday English, that means allowing mayors to collect taxes. Local Government Secretary Angela Rayner this week convened a meeting at Number 10 North, the Government’s new office in Manchester (though the venue is largely symbolic, because she dialled in remotely). She told mayors they would be allowed to impose a charge on holidaymakers in their regions.

The overnight stay levy could add 5% to hotel bills, and the travel industry is worried. Business leaders fear extra costs will put off both Brits and foreigners considering a holiday in the UK. However, this is just the start. Chancellor John Healey is to set out plans for mayors to impose a “local income tax”, as part of his Budget statement on October 28. This may be matched by a cut in the national income tax we all currently pay, but so far that has not been guaranteed. In other words, Mr Burnham’s devolution revolution is likely to cost us all more.

The Prime Minister believes that he transformed Manchester when he served as Greater Manchester Mayor for nine years. His commitment to devolution “is backed by a decade of personal experience of turning around one of the UK’s former industrial heartlands and turning it into the fastest growing city region in the country, bucking the low-growth trend,” he said.

Now, he wants to spread the Manchester story nationwide. In a statement to MPs, he said: “I want every single place across our regions and nations to be able to do the same, creating the conditions for good growth in every postcode.” That involves shrinking central government – and expanding regional administrations instead. Mr Burnham said: “A state that has grown too large at the national level now needs to redirect civil service capacity regionally and locally.”

The comments have alarmed trade unions representing civil servants, who are gearing up to fight potential job cuts. Under Labour’s plans, every part of England is due to get a “strategic” authority by 2028. These are regional councils, also known as combined authorities, which can cover a number of towns and cities. So, for example, the Greater Manchester authority, which Mr Burnham led in his mayor role, includes Wigan, Bury, Bolton and more, as well as Manchester.

Existing strategic authorities, which also include the Liverpool City Region and West Midlands, have tended to serve urban areas with big cities. But similar bodies will now be created in every part of England, including the leafy shires. Mr Burnham would like the new authorities to be led by directly-elected mayors although, in regions where that appears unpopular, the Government will consider other ideas such as a committee of local council leaders.

To start with, strategic authorities will take control of training and drawing up industrial strategies. They will also have the power to build housing, and may be allowed to take over local transport services. In addition, Mayors will sit on the Government’s National Economic Council, which is set to take a bigger role in deciding economic policy.

Over time, they are likely to take on more responsibilities. We’ll find out more when the Government publishes a White Paper, to be called Rewiring the State, alongside the Budget. But there are four big problems.

One involves money. Giving mayors the power to levy taxes is a key part of the plan. And we don’t yet know for sure, but it’s safe to assume you and I will end up paying more tax in total.

The second issue – and there’s no polite way to say it – is that local government has a reputation for chaos and incompetence. Manchester was always an exception. Former city council leader Sir Richard Leese, and ex-chief executive Sir Howard Bernstein, had legendary status in local government circles because they ran the city efficiently.

It’s a different story elsewhere. Consider Birmingham, for example. A judge investigating voting fraud once branded the city a “banana republic”. The city council declared itself effectively bankrupt in 2023, while recent strikes saw black bags full of rubbish piled high in city streets. The quality of local council leadership varies wildly across the country, and is often poor. This is why Prime Ministers, starting with David Cameron in the 2010s, have been so keen on the idea of regional mayors. They hoped the role would attract talented candidates.

Very few people can name their council leader, but regional mayors can become household names. Or that’s the theory, anyway. It remains to be seen whether capable leaders really will emerge across the country.

The third issue is that creating regional mayors causes turmoil for many existing local councils, which will need to undergo expensive changes to fit in with the new system.

And finally, many Labour MPs just don’t like the policy. Steve Reed, who was a Labour Cabinet Minister until he was sacked by Mr Burnham in July, said as much this week. He warned: “When power moves somewhere new, somewhere else has to lose it — and that place is Parliament. This will be controversial with many MPs, including many who backed Burnham for No 10.”

Mr Reed added: “Many Labour MPs told me they feared devolution means handing power from a Labour government to Reform and Green mayors.” Andy Burnham is conducting a huge experiment. He’s convinced the country will benefit from following the example of Greater Manchester – and its former mayor, one Mr Burnham. We can only hope the experiment succeeds, because it may be very expensive indeed.