Andy Burnham’s obsession with Manchester is putting up all our taxes | Politics | News
Andy Burnham wants to spread what he calls โManchesterismโ across the country. Thereโs one big snag. Itโs going to cost us all money. Because a key part of his plan is to allow regional mayors to impose new taxes. The Prime Minister believes that he transformed Manchester when he served as Greater Manchester Mayor for nine years.
He told MPs about โa decade of personal experience of turning around one of the UKโs former industrial heartlands and turning it into the fastest growing city region in the country, bucking the low-growth trend.โ Mr Burnham said: โThe approach that I led in Manchester was all about the public taking control of what they need to do in order to make a place functional for businesses and people. That is Manchesterism, and that is what we will bring nationally.โ
And the Prime Minister said he had โa clear theory of growth and I will apply it to all parts of the UK, learning from what has been achieved in Greater Manchesterโ.
The way he will do this is to create regional councils in every part of England. Most will be led by directly-elected mayors.
And the plan includes what the Government calls โfiscal devolutionโ. In everyday English, that means allowing mayors to collect taxes.
Local Government Secretary Angela Rayner last week confirmed that mayors 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 โlocal income taxโ, 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 Burnhamโs devolution revolution is likely to cost us all more.
Giving mayors the power to levy taxes is a key part of the plan. And we donโt yet know for sure, but itโs safe to assume you and I will end up paying more tax in total.
Andy Burnham is conducting a huge experiment. Heโs 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.