Andy Burnham is set to present a comprehensive 10-year plan for governance, which includes proposals for increased devolution of power and funds to regions outside of London, potentially funded by tax increases that could disproportionately affect middle-class residents in the South of England. The plan, reportedly being developed with prospective Chancellor Ed Miliband, aims to transfer authority and financial resources from Whitehall to local areas to foster economic growth.
Burnham's vision emphasizes devolving powers, which could include granting mayors new tax-raising abilities and greater control over locally generated income and business taxes. While specific tax details are not expected in his initial announcement, allies suggest potential measures such as a property tax on more valuable homes, an increase in capital gains tax, and a new levy on estates, sometimes referred to as a 'death tax'.
Former Transport Secretary Louise Haigh, a key ally involved in Burnham's transition, has advocated for a significant redesign of the UK's tax system, suggesting an equalization of rates for capital gains and income tax. She has also proposed a 'property land tax' to supplement existing council tax arrangements. Proposals from the campaign group Fairer Share, which Burnham's team is reportedly examining, suggest an annual property tax of 0.48 percent. Under this proposal, the average annual charge could be around £748 in the North East, compared to £1,824 in the South East and £2,660 in London.
Burnham, who is set to lead a Labour government following Sir Keir Starmer's tenure, plans to position himself as a catalyst for change after years of economic stagnation. His agenda also includes a commitment to council house construction, the reinstatement of the HS2 link to Manchester, revitalization of former industrial areas, and increased public control over utility services. He intends to establish a 'No 10 North' in Manchester, reflecting his background as the former mayor of Greater Manchester.
Burnham's supporters believe that his 10-year plan, which emphasizes investment in regional infrastructure and technical education, could yield significant benefits by the mid-2030s, potentially benefiting the South of England as well through the growth of regional economies. He has stated that Labour might require a decade in power to fully restore Britain's standing and living standards.
However, the proposals have drawn criticism. Conservative Party chairman Kevin Hollinrake described the plan as a "disaster" and accused Burnham of focusing on "shuffling power between politicians" rather than addressing systemic issues like the welfare system, high taxes, or defense funding. He suggested the approach represents a "politics of distraction" from core national challenges.
Burnham is expected to take office on July 20, following a by-election win in Makerfield, though his current electoral mandate is limited. His platform advocates for a long-term approach to national renewal, aiming to reverse economic decline and improve living standards over the next decade.