A new wave of devolution is set to reshape Britain’s political map, with Prime Minister Andy Burnham’s much‑watched “Rewiring the State” delivery plan due from No 10 next month. The upcoming blueprint follows Chancellor John Healey’s first budget, which pledged the “biggest wave of devolution in a generation” and introduced concrete milestones such as devolving a share of income‑tax receipts to mayors of strategic authorities (MSAs) by 2028 and committing 20 % of business‑rates revenue to mayors from next year. The initiative aims to deliver “good growth in every postcode” but faces a stark reality: many regions risk being left behind as the government focuses on a limited set of areas.
A bold vision for local empowerment
Healey’s budget painted an ambitious picture of a more decentralised Britain. He announced that mayors would eventually receive 100 % of their business‑rates income by the end of the decade and would gain the authority to levy an overnight visitors tax on hotels and bed‑and‑breakfasts within their jurisdictions. The chancellor framed these changes as a supply‑side approach, insisting that “new powers should go to the people who know their areas best”, a sentiment echoed by Burnham’s campaign promise to bring “good growth in every postcode and hope in every heart”. The government’s narrative is clear: by handing more fiscal tools to local leaders, growth can be spread far beyond the current metropolitan hubs.
The race to secure new powers
Fourteen regions already operate under elected mayors, with Manchester, the West Midlands and Liverpool City Region leading the pack. These areas are on track to receive enhanced devolution deals, and the government is finalising agreements for a further ten regions: Devon, Plymouth and Torbay; Hertfordshire; Lancashire; Leicester, Leicestershire and Rutland; Stoke and Staffordshire; Surrey; Thames Valley (Oxfordshire, Berkshire and Swindon); and Wessex. In addition, Essex county council leaders have signed up for an MSA that will unlock roughly £1.2 billion of funding over ten years, while Cornwall’s leaders are negotiating an upgraded deal at No 10 North, seeking both expanded powers and additional resources.
The momentum is evident. “Our members will be part of the conversation now in a way that they weren’t 24 hours ago,” said Vince Maple, leader of Medway council and chair of the Key Cities Group, which includes Gloucester, Sunderland and Salford. He views the expansion of MSAs as a step toward fulfilling the “every postcode” ambition, arguing that broader participation will bring fresh perspectives to national policy.
Hurdles that could stall progress
Despite the forward momentum, significant obstacles remain. The government’s ambitious local‑government reorganisation—intended to transform county and district councils into unitary authorities—has been suspended since September by Housing, Local Government and Communities Secretary Angela Rayner following legal challenges. Several county councils, including Kent, have used judicial reviews to contest the plans, insisting that their unique characteristics be preserved. Kent’s Reform UK‑run council, for instance, argues that the county should remain a single entity, much like Cornwall, and has taken the dispute to court.
Jonathan Carr‑West, chief executive of the Local Government Information Unit, warns that the gaps left by the budget will need filling. “A rewired state needs every tier of government to play its part, and it needs every tier of government to be financially resilient,” he observed. Without a clear roadmap for those regions lacking mayors or special devolution deals, regional inequality could widen, undermining the government’s pledge of inclusive growth.
Economic think‑tank Oxford Economics also cautions that the promised uplift may take time. In its assessment, the consultancy noted that “limited detail, unaddressed challenges, and the length of time for any upside to show” mean the devolution announcements are unlikely to shift current regional growth forecasts. For Burnham, the political stakes are high: the next election will likely hinge on whether voters perceive structural changes as beneficial, even if immediate economic gains remain elusive.
What the public can expect
Looking ahead, the “Rewiring the State” delivery plan is expected to outline concrete steps for integrating the new devolution deals into a coherent national framework. It will likely address how the government intends to fund the promised fiscal transfers, how the overnight visitors levy will operate, and what mechanisms will ensure that all regions—rural and urban alike—can access the same level of decision‑making power.
For ordinary citizens, the changes could mean more responsive local services, from transport to housing, as mayors and unitary authorities gain greater control over budgets and policy. However, the success of this agenda will depend on overcoming legal disputes, securing cross‑party consensus, and delivering tangible benefits quickly enough to satisfy public expectations.
Why it Matters
The devolution push represents a pivotal moment for Britain’s governance, testing whether centralised government can genuinely empower local communities to shape their own futures. If the “Rewiring the State” plan succeeds, it could set a precedent for more inclusive, place‑based policymaking that spreads prosperity beyond the traditional power bases. Conversely, failure to bridge the gaps left by the budget would risk deepening regional divides and eroding trust in the government’s ability to deliver on its promises of equitable growth. The outcome will influence not only the next election’s narrative but also the long‑term cohesion of the United Kingdom.
