Andy Burnham, the presumptive leader of the Labour Party, is set to deliver his first major speech today in Manchester, outlining a vision to redistribute power and resources from London to the North of England. Burnham is expected to take over as leader on July 20, potentially without a full vote of MPs or party members, and has indicated a desire for a decade in power.
His plan centers on devolution, aiming to transfer powers and funding to northern regions to foster economic growth. This could include granting mayors new tax-raising authorities and expanding control over welfare and post-16 education. Allies suggest this blueprint, with potential Chancellor Ed Miliband involved in its development, may lead to new tax hikes disproportionately affecting affluent families in the South of England.
Burnham has previously supported measures such as a property tax on higher-value homes, increased capital gains tax, and a new tax for social care funding. He has also advocated for a revaluation of council tax, which could significantly increase bills in London and the South East.
Furthermore, Burnham intends to establish a "No10 of the North" in Manchester, where he previously served as mayor. He plans to spend a considerable amount of time in the northern city, a move that would necessitate substantial security arrangements.
Some Labour MPs have expressed concerns about a potential North-South division, fearing public backlash if voters feel they are being penalized based on their location. Burnham, however, is expected to argue that investments in regional infrastructure and technical education will yield long-term benefits, potentially including advantages for the South.
While Burnham has stated support for Labour's fiscal rules, some supporters believe there is scope to increase borrowing significantly. The former MP and mayor is also expected to address the decline in public trust in politics, positioning himself as a catalyst for change.
Speculation surrounds Burnham's potential cabinet appointments. Rachel Reeves is reportedly stepping down as Chancellor, with Ed Miliband widely considered a possible successor. However, some unions, businesses, and moderate Labour MPs have reportedly voiced reservations about this appointment. Deputy Labour leader Lucy Powell, a close ally of Burnham, has endorsed Miliband for the Treasury role, noting his previous leadership of her when he was Labour leader. There is also speculation that David Miliband could return to a senior government position, potentially as Foreign Secretary, reuniting prominent figures from the New Labour era.
Conservative leader Kemi Badenoch has called for Burnham to present his priorities to Parliament before the summer recess on July 16. In response, Shadow Chancellor Sir Mel Stride criticized the emerging plans as a "disaster," stating that it signals a move toward increased borrowing, taxes, and spending, echoing perceived mistakes by Starmer and Reeves.