As Boris Johnson's 'levelling up' agenda faltered under the weight of under-investment and centralised resource allocation, Andy Burnham is poised to unveil a radical new vision for Britain – one that transfers power from London and empowers regional communities to drive economic growth. In a forthcoming speech, the Greater Manchester Mayor will outline plans for a major devolution of authority, creating a 'Number 10 in the North' and relocating government functions to the north.
The proposed 10-year strategy puts devolution centre stage, with Burnham advocating for decision-making to be handed over to regions and local communities. This shift from the current 'centralised, top-down model' aims to stimulate growth through 'reindustrialisation', increased housebuilding, and a focus on local economic initiatives. The move is likely to draw parallels with Johnson's 'levelling up' agenda, but Burnham's approach differs in its emphasis on directly empowering local authorities.
Economists have long criticised the limited success of 'levelling up', citing under-investment in devolution and a centralised allocation of resources. Burnham's vision seeks to address these issues head-on, prioritising local growth initiatives and handing control back to regional communities. However, this shift may not come without its challenges – past attempts to relocate government departments have faced difficulties in attracting and retaining staff.
With attention set to turn to the crucial appointment of Burnham's Chancellor, Ed Miliband has emerged as a leading candidate for the role. However, his strong views on net zero and perceived prioritisation of environmental goals over economic growth have raised concerns among some economists. Others, such as Wes Streeting, Pat McFadden, and Yvette Cooper, are also in contention for the Treasury position.
Insights into Burnham's potential economic direction have begun to emerge, with one of his senior advisers calling for increased capital gains and inheritance taxes alongside a loosening of fiscal rules. Louise Haigh, expected to hold a senior Cabinet role, has advocated for a restructuring of the Treasury, proposing separate departments for Whitehall budgets and broader economic policy.