Mayor Andy Burnham's vision for a more devolved United Kingdom, often referred to as 'Manchesterism,' is under examination as he advocates for significant constitutional and economic reforms. His proposals aim to address regional inequalities and shift power away from central government.
Burnham has pointed to Germany's Basic Law, which enshrines a duty for "equivalent living standards" across its regions, as a model that could protect local government in the UK and grant regions a right to be consulted on long-term decisions. This concept underpins his broader call for substantial constitutional change, including the adoption of proportional representation and the replacement of the House of Lords with a "Senate of the Nations and the Regions."
Central to his economic proposals is a critique of the Barnett formula, which allocates public spending and provides top-up payments to Scotland, Wales, and Northern Ireland to prevent them from losing out to England as a whole. Burnham argues that this formula squeezes the north of England, creating an imbalance in public investment. He has previously cited instances, such as in 2007 and again in 2020, where proposed projects in the north failed to pass Treasury assessments, indicating a systemic bias against regional investment. Chancellor Rachel Reeves has explored pilot projects to alter this approach and favor local investment.
Burnham also champions a "Northern Way" approach to Net Zero policies, which he contrasts with what he characterizes as a "Whitehall way." While the "Whitehall way" involves bans, charges, and taxes that disproportionately affect the poorest, Burnham's "Northern Way" would subsidize the transition to green energy, support retrofitting, reduce household bills, and build locally owned exportable industries. This approach, however, faces contradictions, particularly concerning full tax and spend devolution for every region, raising questions about whether areas like the South East would retain all the taxes they generate.
Amidst these proposals, there are considerations of rising global energy prices, pressure on household budgets, and the interests of North Sea energy producers seeking to increase oil and gas extraction. Some reports suggest that aides have downplayed immediate changes to the Barnett formula due to concerns from Scottish politicians.
The economic performance of Manchester has been highlighted as a potential template. Data from the Productivity Institute shows Manchester experienced 42% growth in gross value added per hour worked between 2015 and 2023, surpassing other major UK cities outside London. This growth is presented in contrast to historical population trends, which saw a decline in Manchester from the early 20th century until the early 2000s, followed by a recovery.
Burnham's broader agenda includes devolving significant powers over public services to regional levels, aiming to empower local decision-making and foster more equitable development across the country. The effectiveness of this model for the entire UK remains a subject of ongoing discussion and analysis.