Andy Burnham, the Mayor of Greater Manchester, is reportedly planning to establish a 'national growth unit' named 'No 10 North' to decentralize executive power from London to Manchester. This initiative is seen as a strategic move to counter the significant influence of HM Treasury, the UK's finance ministry.
Sources indicate that Burnham intends to spend a portion of his time in Manchester, potentially basing himself there on Mondays and Thursdays, while maintaining his primary residence in Golborne. This plan, coupled with a broader vision to devolve powers to elected mayors and local authorities, is designed to challenge the Treasury's traditional dominance over government decision-making.
However, wresting authority from the Treasury is a historically formidable task. The Treasury headquarters on Horse Guards Road houses a substantial contingent of over 1,600 civil servants and special advisers, significantly outnumbering the approximately 300 staff at No 10 Downing Street. This imbalance of resources and bureaucratic weight has historically allowed the Treasury to exert considerable influence, with its approval often required for any government expenditure.
Past prime ministers have struggled to curtail the Treasury's power. For instance, Gordon Brown, during his tenure as Chancellor, was known to take extreme measures to avoid perceived Treasury surveillance, reportedly retreating to a small room to discuss policy. A 2022 Institute for Government study highlighted a "worrying imbalance of power in government that leads to bad outcomes in spending," suggesting that the Prime Minister often lacks the necessary leverage to drive strategy, leaving the Treasury to fill the void.
The article suggests that current Chancellor Rachel Reeves has found it challenging to counter the influence of her civil servants. Their warnings of economic instability, such as a potential run on the pound or rising bond yields, are often employed to keep ministerial decisions aligned with Treasury orthodoxy. A notable instance cited is the reversal of a decision to cancel winter fuel payments for millions of elderly people, a move that reportedly caused significant public backlash.
Beyond ministerial challenges, the Treasury's recruitment practices have also come under scrutiny. Complaints from veteran mandarins suggest a decline in the quality of recruits, partly attributed to a shift away from numerical and verbal reasoning tests. The Treasury reportedly discontinued numerical tests due to concerns about adverse impacts on candidate diversity, a decision that critics argue may compromise the analytical rigor of its staff, potentially putting them at a disadvantage when negotiating with the private sector.
Past attempts to diminish Treasury hegemony, such as Harold Wilson's creation of the Ministry of Economic Affairs and the Ministry of Technology in the 1960s, ultimately failed, with both departments being abolished within six years. This historical precedent suggests that Burnham's ambition to create 'No 10 North' will face significant institutional resistance from the Treasury, regardless of his strategic vision or political acumen.