Analysis: Westminster still doesn't understand the benefits of devolution

While up in Yorkshire, mayors and others reacted positively to handing over to the new Prime Minister handing over a portion of business rates in 2027 and income tax in 2028, in Westminster the response was largely bafflement.

Before Andy Burnham’s treacherous journey over the “crumbling” Snake Pass to get to Sheffield for his fiscal devolution announcement, his de-facto deputy Louise Haigh tackled the London media.

While up in Yorkshire, mayors and others reacted positively to handing over to the new Prime Minister handing over a portion of business rates in 2027 and income tax in 2028, in Westminster the response was largely bafflement.

On BBC Radio 4’s flagship Today Programme, Ms Haigh put forward the case for moving powers into local communities, with decisions happening closer to voters.

She told veteran broadcaster Justin Webb that this will allow mayors to “generate revenue and reinvest it in their local area”.

Andy Burnham and South Yorkshire Mayor Oliver Coppard. Credit: PA

The Sheffield Heeley MP explained: “We see where this works across Europe in places like Lyon, in France, where they retain a share of their local taxes. It means they can benefit from their success and the growth of their economy.

“It’s why other areas of Europe really enjoy far better transport systems than we do, because they’ve invested it and devolved these powers and resources to local communities.”

Mr Haigh witnessed this first hand when she was transport secretary. She visited Dijon, in France, which is roughly the size of York and has buses every five minutes in rush hour, the tram running every three minutes and has a dial-a-ride service to outlying villages.

A tram in Dijon, France, a transport system Louise Haigh is keen to emulate. Credit: PHILIPPE DESMAZES/AFP via Getty Images

Meanwhile Leeds, which is almost four times the size, is the largest city in Europe without a mass transit system, and mayor Tracy Brabin is battling Whitehall to stop her tram plan from being turned into a bus system.

But Mr Webb, from his London studio, replied: “It will feel to some like all of this is just changing the deck chairs, moving the deck chairs on the Titanic because the actual problem is economic growth.

“All of this is fiddling about with ways in which money is distributed but it doesn’t approach growth.”

Mr Burnham’s experience as Greater Manchester Mayor is the exact opposite.

Louise Haigh said proposals for the scheme would be considered (Yui Mok/PA)

As one of the trailblazer mayoral combined authorities, he was handed additional powers that Yorkshire mayors are only just getting.

This allowed him to create the Bee Network, an integrated transport system, making it far easier for people to get around Greater Manchester.

In West and South Yorkshire, the mayors are still waiting to take control of bus services, and, as mentioned earlier, Ms Brabin is battling with mandarins to get her tram plan approved.

These powers will not only hand our politicians greater flexibility with funding, but as experts have said it will allow them to borrow against future funding.

This was used in London to fund the Elizabeth line, yet has been tricky for Yorkshire mayors due to the “begging bowl” culture of grants.

If it’s good enough for London, it should be good enough for Leeds - something the Westminster establishment will have to accept now Mr Burnham is Prime Minister.