Andy Burnham has unveiled a significant shift in the UK’s economic governance, positioning regional mayors at the forefront of policymaking. The new Prime Minister described the launch of ‘No 10 North’ as “the biggest rebalancing of power our country has seen,” emphasising the need for collective action in economic strategy.
Reviving the National Economic Council
Burnham has resurrected the National Economic Council (NEC), originally established by Gordon Brown during the 2008 financial crisis, to tackle the current economic challenges with equal urgency. In a recent piece for the Guardian, he stated, “When I entered Downing Street, I told staff that the era of fighting devolution is over. No one in government loses when power is shared.”
The NEC is set to hold its first meeting under Burnham’s leadership, gathering senior ministers and regional mayors to embed devolution in the government’s core mission. He highlighted the persistent concentration of decision-making power in London as a barrier to growth, vowing that ‘No 10 North’ aims to rectify this imbalance. Burnham asserted, “It is about driving growth from the most powerful office in the land and doing so in close alignment with the Treasury.”
New Structure, New Opportunities
Operating from Heron House in Manchester, the interim headquarters for ‘No 10 North’, Burnham will make history as the first British leader to run government operations from the north of England. In a bold move, he has established a new Prime Minister’s department that consolidates elements of the Cabinet Office, Treasury, and housing ministry to create what he describes as “the dominant driver of the UK’s economy.”
This restructuring is intended to ensure that economic decision-making reflects the needs of local communities rather than being dictated solely from Westminster. Key figures from Burnham’s cabinet, including Louise Haigh, the newly appointed head of the Office for the Prime Minister and the Cabinet, will work from Manchester, reinforcing the government’s commitment to regional collaboration.
A Call for Genuine Devolution
With regional mayors now invited to collaborate directly with central government, Burnham insists that this initiative is about more than mere optics; it represents a fundamental change in how power is exercised in the UK. He foresees ‘No 10 North’ as a catalyst for driving regeneration, breaking down barriers to public infrastructure projects, and ultimately achieving equivalent living standards across the country.
The NEC will adapt its membership based on the topics at hand, bringing together business leaders, trade unions, and other stakeholders to inform decision-making. This flexibility aims to emulate the urgency of its predecessor while ensuring a comprehensive approach to economic revitalisation.
Why it Matters
Burnham’s commitment to devolving power marks a pivotal moment in UK politics, promising to reshape the economic landscape by prioritising local voices in national decision-making. By embedding regional mayors in the heart of policy formation, this initiative could foster a more inclusive and equitable approach to economic growth. If successful, ‘No 10 North’ may not only redefine the relationship between central and local government but also serve as a blueprint for future administrations aiming to address regional disparities across the UK.
