Andy Burnham will pledge to deliver “good growth in every postcode” by overseeing a significant transfer of power out of Whitehall to local communities as he sets out his case for a decade as UK prime minister. In his first major speech since winning the Makerfield byelection, Burnham will argue for decision-making to be devolved to regions and communities to drive economic growth locally, replacing the current top-down national model.
Fiscal Devolution and Tax Powers
The former Greater Manchester mayor is understood to be considering handing local authorities some powers over taxes, including business rates, after Rachel Reeves acknowledged she had “unfinished business” on fiscal devolution. With Burnham on course to take over from Keir Starmer as prime minister in just three weeks’ time, he will begin to set out his platform for government in his speech, saying he will “lift Britain back up to where it should be”.
Many Labour MPs are more hopeful about their party’s fortunes than they have been for months. Nevertheless, some remain concerned that Burnham is “underprepared” for government and anxious about the direction he will take the country. They will watch closely for any hint of whom he might pick as his chancellor – with Ed Miliband still thought to be the frontrunner, although other names are in the frame – and whether he will do more to reassure the markets.
Chancellor Speculation
Lucy Powell, Labour’s deputy leader and a close Burnham ally, fuelled further speculation on Sunday when she suggested that Miliband would be “good” at running the Treasury, although she said such conjecture was “distracting” from getting on with running the country. In his speech in Manchester on Monday, Burnham is expected to explain how he would “give Britain the circuit-breaker it needs” when he makes it to Downing Street, with what he describes as the biggest transfer of power out of Whitehall in modern times.
The UK has some of the worst regional inequality of any developed country, which he argues is in part because political power is highly centralised in London, although he is expected to say that his plans will make the whole country better off. His proposals would appear to be a national version of his “Makerfield test”, when he promised to govern according to how policies would affect his new constituents.
Devolution and the Greater Manchester Model
Burnham has previously called for every area of the UK to be given its own devolved settlement, allowing all regions to elect a mayor should they choose. In a book published with the Liverpool mayor, Steve Rotheram, two years ago, he also called for a “basic law” that would require the government to equalise living standards across the country. In Manchester, Burnham will say his motivation for standing to be Labour’s next leader – likely unopposed – is to “change politics to make it work for us”, suggesting that his generation of politicians, including himself, must take responsibility for the loss of public trust in politics.
After a byelection campaign during which he was notably cautious in directly attacking Nigel Farage’s Reform UK, he will call for a new political culture focused on place before party, problem-solving before point-scoring, and long-term thinking over short-term politics. Echoing Starmer’s plan for a decade-long programme of government, he will commit to a 10-year “mission” to raise living standards through reindustrialisation, housing, infrastructure and improvement of essential utilities such as water. Some infrastructure funds are also likely to be devolved.
Relocation of No 10 Operations
Burnham is expected to say that there must be a change in how Britain is governed, not just who governs it, and to confirm his plan to move parts of the No 10 operation to Manchester to drive devolution and coordinate long-term economic renewal across the UK. As part of this, he will draw on what he describes as the Greater Manchester model, with a partnership between government, business, universities and communities, although it is unclear exactly how this would work.
Burnham will also return to his theme of updating public procurement rules to ensure maximised support for British jobs and British industry and, in return, secure more social value in the form of work placements and apprenticeships. He will continue improvements to the education system to ensure parity between academic and technical paths, something that has been pursued by successive prime ministers, rather than being “overly focused” on the university route. And he will start setting out a “significant” response to the Milburn report to reduce the number of young people who are not in education, employment, or training.
Chancellor Considerations and Fiscal Rules
There is a view in Burnham’s team that his pick for chancellor has to be able to smash through Treasury orthodoxy to pursue a more radical economic vision, and Miliband has the experience and inclination to do this. However, they also acknowledge that Burnham would have to expend some political capital by appointing him, with concerns it could unsettle the markets and frustrate big business and the unions, as a result of his position on the North Sea and relentless focus on the net zero agenda.
Sources said the new Makerfield MP would lean heavily into his commitment to sticking to the fiscal rules and Labour’s tax pledges. “Andy has repeatedly said he will do so, but he needs to stress that again because it needs to really land,” they added. One ally suggested that Burnham’s focus on fiscal responsibility in the speech could indicate which way he was planning to go with his chancellor – with his team saying he had not yet made a final decision. “The more boring the speech is, the more likely it is that Ed will be chancellor,” they said.
The home secretary, Shabana Mahmood, has also been mooted for the role – although she is understood to be keen to stay at the Home Office – as well as the former health secretary Wes Streeting. The senior Labour MPs Yvette Cooper and John Healey have also been touted. Steve Reed, the communities secretary, told the BBC on Sunday that Burnham would stick to the fundamentals of Labour’s 2024 manifesto, including the fiscal rules, but there would be a “shift in emphasis and focus”.
