The UK Prime Minister has announced a major overhaul of the government's machinery, aimed at driving economic growth and empowering local leaders. The changes, announced on July 22, 2026, include the establishment of No.10 North as the engine room for devolution and economic growth, with key functions shifting between departments.
No.10 North will take on responsibilities for local economic growth and devolution strategy, previously handled by the Ministry of Housing, Communities and Local Government, as well as local economic growth policy, which was under HM Treasury. This will ensure that local economic growth policy and regional empowerment are no longer isolated from one another, establishing No.10 North as the dominant driver of the UK's economy.
The Office for the Prime Minister and Cabinet has been created to focus on delivering the government's top strategic priorities. The office will house No.10, No.10 North, and core Cabinet Office functions serving the PM and Cabinet. A new AI Taskforce, supported by a Prime Ministerial adviser on AI, will be established to drive the government's overall strategy on AI and unlock its opportunities for growth, prosperity, and public sector transformation.
The Cabinet Office will also take the lead on AI adoption across the Civil Service, reflecting the urgency of delivering this transformation for the benefit of people across the country. The Office for Equality and Opportunity will move to the Ministry of Housing, Communities and Local Government, while the Office for Impact Economy and responsibility for policy on digital identity will move to the newly expanded Department for Digital, Culture, Media and Sport.