Prime Minister Andy Burnham has transferred responsibility for economic growth from the Treasury to his new Downing Street branch, No. 10 North, located in Manchester. This move is intended to streamline the government's focus on economic expansion, separating it from the Treasury's primary role of controlling public finances. Burnham stated that Chancellor John Healey fully supports the decision, characterizing it as a significant devolution of power away from Whitehall.
No. 10 North, established by Burnham, has faced criticism from the Conservative party, who have labeled it a mere "gimmick." However, Burnham, formerly the Greater Manchester mayor, emphasized that the office is not simply a satellite location or a personal workspace closer to his home. He believes this restructuring will empower No. 10 North to effectively address and remove obstacles within the broader Whitehall system that hinder the growth agenda.
Burnham drew a parallel between his current initiative and the short-lived Department of Economic Affairs, created by former Labour Prime Minister Harold Wilson in 1964 to divide Treasury functions. He expressed a desire for a more serious engagement with the proposition he is presenting.
The Prime Minister is expected to divide his time between Westminster and No. 10 North during his premiership. His broader pledge is to foster "good growth in every postcode" by decentralizing power from Westminster. He indicated that Healey, with whom he maintains a close working relationship, is set to deliver a major speech on the government's economic strategy next month. Following this, Burnham plans to present his "ten-year plan" for the nation after the Budget on October 28.
Burnham acknowledged that his initial policy announcements since taking office on July 20 have not been "earth-shattering," but suggested that the public is seeking tangible improvements and a clear sense of governmental action. He described the transition to No. 10 as marked by its "relentlessness" and "scale." He also admitted to a "bumpy" start to his premiership, referencing a contentious debate over the early release of prisoners.
In relation to this issue, Justice Secretary Alex Norris is expected to introduce a revised proposal on September 1, as the government seeks to prevent two individuals convicted in the death of PC Andrew Harper from being released in January under existing plans.
When questioned about public perception, Burnham critiqued politicians who he felt "made a fetish" out of being "tough" and "masochistic," asserting that the primary goal should be to improve people's lives, which he believes leads to popularity. He expressed satisfaction with the government's initial progress and the need for a more positive period ahead.
Housing Secretary Angela Rayner, speaking on Wednesday morning, reassured that Healey has not been sidelined. She stated that the Chancellor is working collaboratively with the Prime Minister and other Cabinet members, reiterating the government's commitment to devolution and community empowerment, as outlined in a previous cabinet statement. Rayner cited the economic growth observed in Greater Manchester under Burnham's mayoralty as an example of what can be achieved when local areas are empowered to drive investment and address their specific economic challenges, moving away from a centrally controlled system in Whitehall.