That's actually what happens in Switzerland: different cantons have completely different tax regimes - income tax, business rates etc - and keep most of the tax take to spend on that canton. The central government does take some of the tax to redistribute between cantons, but only to ensure a basic level. It's very much expected that cantons which are richer (eg. Zurich, the financial centre) will get more tax reciepts and so will have better public services.
It means that the cantons actually take the economic impact of their tax regime seriously, and compete to bring in businesses - unlike the UK's tax devolution, which is only ever used to take more, with no consequences as to the impact.
That's what successful fiscal devolution looks like - not Burnham's make-believe, which is just a sleight-of-hand, to try to camouflage yet more redistribution.
Unfortunately, in order for it to work, I think you do need to already have success in different regions, like Switzerland has. The UK is too lopsided.
GRDP per person in London is £69k compared to £32-£35k for most of the rest of the UK (just £28.5k in the NE). Scotland's GRDP per person is £37k onshore only, or £40.3k including offshore oil and gas, and Wales is £29k.
We already have absolutely massive regional redistribution.