London, United Kingdom. Andy Burnham, described as Britain’s next prime minister, has made decentralising power a central goal of his premiership, pledging greater authority for regional leaders to address persistent inequality.
He has promised what he calls the “biggest rebalancing of power our country has ever seen”, including more control over spending, transport, housing, skills and economic growth.
Political and administrative challenge
The plan faces significant political and administrative challenges, including potential resistance within central government and the time required for benefits to emerge.
Burnham will have no more than three years before the next national election. Previous British leaders have faced voter backlash after failing to fulfil promises to transform the country.
“If you talk a good game, but don’t actually pass any of the power on, or it happens very slowly, people get impatient and get frustrated by it,” said Henri Murison, chief executive of the Northern Powerhouse Group, a lobby group representing northern English business and civic leaders.
Centralisation and regional disparities
Britain is among the most centralised developed democracies in terms of tax and spending and is also among the most economically unequal. Many economists and lawmakers argue that the two issues are directly linked.
About 6% of tax revenue is raised below national government level, compared with 20% in France and about half in Germany and the United States, according to the Organisation for Economic Cooperation and Development.
Regional inequalities in Britain are larger than those between eastern and western Germany and between northern and southern Italy, two of Europe’s most economically unequal countries.
Need for local accountability
Supporters of devolution argue that regions controlling their own revenue have stronger incentives to attract businesses and expand their tax bases.
Experts say transferring budgets alone would not be sufficient. The changes would also require new systems of local accountability and financial control in parts of England where such structures are weak or do not exist.