The proposal for a 'No 10 North', championed by Andy Burnham as part of his leadership campaign, is set to face its first major test in the coming months. Deputy Labour leader Lucy Powell yesterday robustly defended the plan, describing it as "a very powerful reorganisation of government" that could foster faster regional economic growth by decentralising power from Whitehall.
At the heart of Mr Burnham's vision for devolution is the relocation of sections of government to Manchester and other northern cities, granting regional leaders enhanced authority over critical areas such as planning, transport, housing, and economic development. The establishment of a 'No 10 North' would drive policy outside the capital, ensuring that decisions are made closer to the communities they affect.
Ms Powell sought to reassure businesses and local leaders that Labour's devolution agenda would not impose a uniform model across England, instead empowering regions to develop economic strategies tailored to their unique industrial strengths. She highlighted Manchester's 'knowledge economy' built around computing, digital, and advanced manufacturing as an example of the benefits of this approach.
Meanwhile, the current government is pressing ahead with extensive council reorganisations in up to 16 areas, including major cities like Oxford, Cambridge, Leicester, and Brighton. The Local Government Secretary, Steve Reed, confirmed that these reforms are "definitely" proceeding, with the aim of streamlining planning processes, accelerating infrastructure projects, and empowering regional leaders.
Ministers argue that this new framework will allow for more effective decision-making at a local level, attracting investment and driving economic growth. However, Labour's devolution agenda is expected to face an early political challenge in the form of expanded council elections next May, which could see over 18 million voters participating.
Jonathan Carr-West, chief executive of the Local Government Information Unit, noted that these elections could serve as a "proof of concept" for Mr Burnham's programme. However, he cautioned that councils embroiled in contentious reorganisations might lack the necessary 'political or logistical headspace' to effectively implement devolution.
These changes coincide with Mr Burnham's efforts to convince financial markets and the business community that constitutional reform can genuinely support economic growth rather than detract from it. The incoming Prime Minister has consistently committed to Labour's fiscal rules, while arguing that decentralisation is key to unlocking regional potential.