In a significant shift in British governance, regional mayors are set to assume a central role in shaping the UK’s economic policy under the leadership of the newly inaugurated Prime Minister Andy Burnham. Launching the initiative dubbed No 10 North, Burnham heralded this development as a monumental redistribution of power, aimed at fostering growth across the country.
A New Economic Council to Drive Change
Burnham has resurrected the National Economic Council (NEC), first established by former Prime Minister Gordon Brown during the 2008 financial crisis. This body will convene senior ministers and regional leaders to ensure a coordinated approach to economic recovery and growth. In a recent article, Burnham asserted, “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 Prime Minister will chair the NEC’s inaugural meeting, set for Friday, and emphasised that the time has come for a genuine shift of decision-making power from Whitehall to local leaders. He stated, “Even though Whitehall departments have set up outposts, decision-making power has remained in London… No 10 North is seeking to correct this.”
The Structure of No 10 North
Operating out of Heron House in central Manchester, No 10 North is envisioned as the nucleus of local economic strategy. This interim headquarters will not only house Burnham’s team but will also accommodate civil servants and regional mayors, fostering direct collaboration on crucial economic issues.
In a strategic move, Burnham has also established a powerful new Prime Minister’s department that consolidates functions from the Cabinet Office, Treasury, and housing ministry. This new office, led by his close ally Louise Haigh, will oversee the operations of both No 10 North and the London office, though it raises questions about the balance of power within the government.
Haigh, alongside key figures such as Education Secretary Lucy Powell and Communities Secretary Angela Rayner, will spend time at No 10 North, reinforcing the commitment to regional engagement in policymaking.
A Shift Towards Local Empowerment
The NEC will adapt its membership based on the issues at hand, bringing together business leaders, trade unions, and various stakeholders to enhance decision-making. Burnham envisions this collaborative approach as pivotal for driving reindustrialisation and economic growth across the UK. He declared, “It will remove barriers to regeneration, from council house building to public transport infrastructure.”
With this new economic framework, Burnham aims to align the resources of Whitehall with the needs of local communities, promising to elevate living standards across regions. The Prime Minister’s long-term ambition is for parity in living conditions throughout the UK, a goal he argues is now within reach.
Why it Matters
The establishment of No 10 North and the revitalisation of the NEC signal a transformative moment in UK politics, potentially reshaping the relationship between central and local government. By placing regional mayors at the forefront of economic strategy, this initiative could lead to more tailored and responsive governance, addressing the specific needs of communities across the nation. If successful, it may not only enhance local economies but also redefine the very nature of political power in the UK, fostering a more equitable and inclusive approach to governance.