North East mayor Kim McGuinness has written to new Prime Minister Andy Burnham, urging him to deliver a 'new era of power in the regions' by devolving significant powers and funding to local leaders. Burnham, who succeeded Keir Starmer on Monday, pledged in his first Downing Street speech to take power out of Westminster and 'carry it into every postcode in the land'. McGuinness's letter, sent Monday afternoon, calls for 'system change, immediate interventions to tackle the cost of living, and long-term changes that give people hope of a better future'.
Fiscal Devolution Demands
McGuinness's first demand is for mayors to control a share of national tax revenue, describing fiscal devolution plans announced by Chancellor Rachel Reeves earlier this year as 'the most important next step in our devolution story'. She warned it is 'vital we do not allow this progress to slip'. She also called for a guarantee of long-term funding to maintain a cap on bus fares, currently £3 nationally but £2.50 in the North East. Reports suggest Burnham may seek to reduce the national cap back to £2, as he did with Greater Manchester's Bee Network when Labour raised the limit in January 2025.
Housing and Youth Employment
McGuinness reiterated calls for mayors to receive funding for housing retrofit to reduce energy bills and create construction jobs, as well as powers and money to overhaul education and employment support for 16 to 19-year-olds. The North East has the highest rate in England of young people not in education, employment, or training – 21%, totaling over 64,000 individuals, according to 2025 government figures. Burnham, in his Downing Street address, promised changes to the education system and extra mental health support to help young people into work.
Cross-Party Support
Glen Sanderson, Conservative leader of Northumberland County Council, told the Local Democracy Reporting Service that the North East must be 'firmly in the picture' for Burnham's administration, with the dualling of the A1 as his top priority. Sanderson added: 'It means not just ensuring that really important jobs like the dualling of the A1 are done, but also a recognition of the way Northumberland is going now and the great economic growth we are seeing. I want Northumberland to be recognised as somewhere that is not just a faraway land of lovely castles, beaches and lots of sheep – but as a thriving, growing, and ambitious county.'
Rough Sleeping Pledge
Burnham's stated mission to end rough sleeping in the UK echoes a similar pledge he made as mayor of Greater Manchester, where he donated part of his salary to a 'Bed Every Night' programme. However, figures from 2025 showed rough sleeping rose year-on-year, with 154 people seen sleeping rough on a single night in autumn 2024, up from 149 in 2023, though down from a 2017 peak. Labour MPs Chi Onwurah and Kate Osborne backed the pledge, with Onwurah saying it would 'make a real difference to vulnerable people in Newcastle and the look and feel of our streets'. Osborne added: 'Andy Burnham understands that Britain cannot succeed while power, wealth and investment remain concentrated in Westminster and the South East. Now we must deliver the change working-class communities voted for.'
