Andy Burnham is set to claim that London and the south are 'paying the price' for the economic failure of the north, according to reports. The newly-elected Makerfield MP, expected to become Prime Minister next month, will deliver his first major policy speech since Sir Keir Starmer's resignation, outlining an economic strategy to drastically cut Whitehall budgets and redirect funds to regional mayors.
Devolution-First Agenda
The speech on Monday comes amid reports that Burnham plans to carve up the Treasury, moving part of the flagship department to the North. He is expected to set out a 'devolution-first' agenda, requiring Whitehall departments to assess which responsibilities and funding should be transferred to regional governments. This could reduce the size of Whitehall as roles in transport, education, and work and pensions are devolved.
Plans to move funding and jobs away from London have sparked fears of major damage to the capital's economy. Labour MPs worry that a focus on regenerating the north could cost the party seats in London and the south. However, Burnham is expected to argue that his plans will make the whole country better off.
Economic Imbalance
Burnham will reportedly argue that richer parts of the UK have long subsidised poorer areas without attempting to distribute economic growth evenly. According to the National Office of Statistics, people in London pay £24,400 in tax on average but receive only £19,500 in public service spending. In the southeast, they pay £17,600 and get £15,900 back.
The devolution agenda aligns with views Burnham expressed in his book Head North, co-authored with fellow mayor Steve Rotheram. In the book, he criticised the current system where regional leaders go 'on bended knee' to Westminster and called for a 'more balanced approach, where councils and mayors were dealt some cards too'.
Leadership Timeline
If Burnham remains the only candidate for the Labour leadership, his speech will come exactly three weeks before he enters Downing Street. Nominations close on July 16, and if unopposed, he will be formally declared Labour leader at a special conference the following day. However, precedent dictates he will not become prime minister immediately, with the handover on July 20.
Cabinet Speculation
Burnham continues to consider his future cabinet. Rachel Reeves appears to have conceded she will not stay on as Chancellor, with Home Secretary Shabana Mahmood and Energy Secretary Ed Miliband reportedly in the running. An unlikely alliance of trade unionists and city traders have urged Burnham against appointing Miliband as chancellor, citing concerns over his net zero policies. However, the transport union TSSA has backed Miliband. Questions also remain over Mahmood's role at the Home Office, with some Labour figures suggesting he should scrap her proposals to extend the waiting period for immigrants applying for indefinite leave to remain.
