Andy Burnham's call for a radical reindustrialisation of Britain is gaining traction, with the Mayor of Greater Manchester advocating a state-led approach to revive what he sees as decades of economic decline and regional imbalance. Unlike the ill-fated tax-cutting mini-budget of former Prime Minister Liz Truss, Burnham's vision centres on significant public investment to rebalance the economy, which has been dominated by the City of London for over 40 years.
The UK economy, argues Burnham, has suffered from a shrinking manufacturing sector, persistent trade deficits, and stagnant living standards since the 2008 banking crisis. This is attributed to the neoliberal policies introduced by Margaret Thatcher, which have failed particularly in Britain's traditional industrial heartlands across Scotland, Wales, and the North of England. Labour leader Keir Starmer's recognition of geographical economic disparities echoes Burnham's sentiment.
According to a forthcoming book, 'Reindustrialise Britain', co-authored by economist Larry Elliott and others, addressing Britain's core issues requires a shift from distribution-focused policies to production-led strategies. This necessitates a state-led approach that commits to foundational industries like steel, alongside advanced engineering, automation, digital technology, and clean energy. The proposed national investment bank would channel substantial public funding into these sectors, providing long-term capital for infrastructure projects in transport, energy, and industrial supply chains.
Burnham's own experience as Mayor of Greater Manchester is cited as a small-scale example of this approach, where he identified specific cluster locations backed by infrastructure investment to attract high-value private employment. However, significant obstacles remain, including the need to rebuild technical know-how and hands-on experience in industries that have declined over decades.
A considerable investment in skills and technical training is required, with trade unions playing a crucial role in this revitalisation. The plan marks a clear departure from neoliberal economic dogma, repositioning organised labour as a key partner in economic renewal. This ambitious approach requires a sustained commitment to long-term public investment, which may face resistance from those who favour more conventional policy solutions.
The proposed 10-year investment programme, linked to public equity stakes, aims to systematically rebuild public wealth and encourage private sector investment. While challenges are substantial, the potential benefits of reindustrialisation could be transformative for regions that have been left behind by decades of economic decline.