As the UK grapples with the aftermath of Brexit and the ongoing impact of globalisation, Greater Manchester Mayor Andy Burnham has unveiled an ambitious economic vision that seeks to reindustrialise the country's economy, a move he claims is vital to his 'Manchesterism' agenda. At its core, this radical proposal aims to reclaim Britain's manufacturing and production prowess in key sectors such as steel, defence, energy, food, and farming, marking a significant departure from decades of economic policies that have dominated UK politics.
Mr Burnham's plans signal a seismic shift away from the free-market ideology that defined New Labour governments during his own time in power. In 2005, then-Prime Minister Tony Blair famously dismissed concerns over globalisation, advocating for adaptation to an 'unforgiving' market. This approach saw public spending increased and the financial sector turbocharged, but manufacturing's share of the UK economy plummeted from 18% in 1997 to a mere 10% by 2010.
The consequences of this decline have been stark, with many deindustrialised communities left behind despite significant investment in public services. As globalisation continues to be re-evaluated in the wake of pandemic-induced economic shocks and trade tensions, leading figures including Shadow Chancellor Rachel Reeves have declared that 'globalisation as we once knew it is dead.' Mr Burnham's call for 'reindustrialisation' is part of this broader trend towards prioritising national economic resilience and domestic production.
The historical scars of deindustrialisation remain a painful reminder of the need for robust policies. The closure of major industries in areas like Wales following the 1984-85 miners' strike left deep-seated economic and social challenges that persist to this day. Efforts to replace lost employment often led to short-lived ventures, such as the 'red shed programme,' which ultimately failed to deliver sustainable growth.
Mr Burnham's plan seeks to learn from these mistakes by empowering local areas to drive genuine economic growth through regional industrial strategies and critical sector investment. By prioritising domestic production and innovation, his vision aims to create a more balanced and secure national economy that is less reliant on external markets and better equipped to navigate the challenges of an increasingly globalised world.