Burnham confirms he will set up No 10 North in Manchester, to make ‘power flow’ around country
Burnham confirms that he will set up a No 10 North in Manchester.
The change will be the biggest change in our lifetimes to the way the country is run, and it is consistent with the 2024 manifesto.
We will create a more streamlined state with a clearer purpose to power up all parts of the country and put a laser-like focus on growth and regeneration, good growth.
The change will be driven through the prime minister’s office in an extended operation based here in Manchester.
But here’s the important thing; it will only be based here. The job of No 10 North will be to make power flow into the Midlands, into the South West, into the East of England and yes, into London.
Key events
CBI broadly welcomes Burnham’s speech
Kemi Badenoch and the Conservatives are suggesting that an Andy Burnham government would just be a more leftwing version of Keir Starmer’s. (See 10.32am.) But they don’t seem to have persuaded the CBI, which has issued a broadly positive response to the Burnham speech.
This is from Rain Newton-Smith, the CBI chief executive.
Business will welcome Andy Burnham’s clear focus on growth and delivery. Taking the positive, dynamic and collaborative approach that has helped public and private sectors drive growth in Manchester and applying it at UK level would give industry a practical agenda it can get behind.
Business will welcome the commitments to sound public finances, upholding fiscal rules and maintaining investor confidence. Backing innovation and scale-ups, boosting international trade and tackling youth unemployment by strengthening apprenticeships are practical steps that can help unlock growth.
Business leaders will be encouraged by efforts to use the levers of devolution to spread prosperity across the country. While London must remain vital to UK growth and investment, helping other regions attract greater investment and make decisions that reflect local priorities is essential to taking the economy forward.
While firms support many of the ambitions, they will need a clear delivery plan – particularly on business rates. Proposals for greater intervention in markets such as transport and utilities must avoid deterring investment. Public-private partnerships remain the most effective and affordable route to upgrading critical infrastructure, crowd-in vital private capital and deliver long-term growth.
As Graeme Wearden reports on his business live blog, the City seemed comfortable with the speech too. The pound was up very slightly after Burnham finished, and government borrowing costs down a fraction.
Shelter says Burnham’s council housebuilding pledge could ‘utterly transform’ Britain
Shelter, the housing charity, says Andy Burnham’s call for the biggest council housebuilding programme in the postwar period (see 12.48pm) could “utterly transform” Britain. Sarah Elliott, its chief executive, said:
Andy Burnham is right on the money here. Any government that is serious about fixing life’s foundations must start by delivering a new generation of social rent homes and strengthening the arm of councils to get building.
Council-built social homes once provided a stable basis for millions of people across the country to get on in life and succeed. Politicians have ignored this fact for far too long, while people’s hope dwindled away and our supply of genuinely affordable social rent homes fell through the floor.
Delivering the biggest council housebuilding programme since postwar period has the potential to utterly transform our country and restore the building blocks of people’s lives. To make this vision a reality, the government must set councils up to build by removing unsustainable debt and delivering a big boost to investment.
What thinktanks are saying about Burnham’s speech
Here are four thinktanks responding to Andy Burnham’s speech.
The Fabian Society, the Labour party thinktank, agrees with Burnham about the importance of devolution. This is from Luke Raikes, its deputy general secretary.
The UK’s local economic investment rate is half that of France, Germany and the OECD average. That’s because in the UK, the Treasury hoards 95% of our taxes and then fails to invest in the infrastructure people need …
Ultimately, centralisation is the root cause of the growth failures in the north and the housing failures in the south. The answer to both problems is devolution.
And the left-leaning IPPR takes a similar view. This is from its executive director, Harry Quilter-Pinner.
Andy Burnham is right to put rebalancing Britain at the heart of his agenda. The UK’s concentration of power and opportunity in Westminster has held back growth, productivity and living standards for too long. This is a problem for London – blighted by overcrowding and house price inflation – as much as it is for the north and Midlands.
Labour is also right to reassure the markets by sticking to the fiscal rules. But fiscal discipline should not be confused with a lack of ambition. The government can still pursue a radical agenda by increasing investment, reforming the state and devolving real power over areas like skills, transport and local finances.
The LGIU (Local Government Information Unit) also wants to see more devolution to local government but (like Zack Polanski – see 1.32pm) is not sure councils have the resources to take advantage of new powers. This is from its chief executive, Jonathan Carr-West.
Andy Burnham’s speech today was the most ambitious statement on devolution we have seen from a senior politician in a generation.
At LGIU, we have always argued that national success has local foundations, and that democratic control, economic growth and excellence in public services cannot be achieved by working from the top down, only nurtured from the bottom up. Burnham appears to understand this based on his remarks this morning …
But vision requires a vehicle. We have seen ambitious visions before, and we have seen many governments come unstuck because of their failure to empower councils sufficiently.
Local government is the operational frontline of the state, and right now it is hollowed out and close to collapse. Number 10 North, reindustrialisation, housebuilding: none of this works without councils that have the capacity to deliver it.
And the Joseph Rowntree Foundation says people need more help with the cost of living. This is from Chris Belfield, its chief economist.
Strong communities help us to feel connected, confident and in control and Andy Burnham is right to focus on devolving more power to where people live. But strong communities can only flourish when they’re resilient to shocks. And there can only be hope in every heart when people expect their living standards to improve.
Household incomes are expected to fall between now and the end of the parliament. People can’t wait 10 years to see an improvement. This is why we need a plan for living standards that includes bold action on rent costs, energy prices, social security and employment protections
Today, JRF sets out a policy package which would return incomes to growth for the majority of households while lowering inflation. Devolution is vital, but it cannot thrive without wholesale economic reform that fundamentally rethinks how we build household economic security.
Here is video from Andy Burnham’s speech.
How other political parties reacted to Burnham’s speech
The Conservative and Reform UK issued responses to Andy Burnham’s speech before he had even spoken this morning. Kemi Badenoch said that Burnham was just offering conventional Labour solutions (see 10.32am), and that devolution was just a means for Westminster politicians to avoid difficult decisons (see 10.56am). And, in an interview this morning, Robert Jenrick from Reform UK said that Burnham’s plans would take too long to implement, and that he was not proposing anything to cut welfare spending or immigration.
Ed Davey, the Lib Dem leader, was more sympathetic. In a statement issued after the speech was delivered, he expressed support for what Burnham wants to achieve – but was sceptical about whether he succeed. He said:
Struggling families and cash-strapped councils desperately need real change.
We urgently need to shift power out of Whitehall and into the hands of local communities. But that has to mean actually listening to people and councils and giving them a real say over their areas – not imposing a one-size-fits-all answer from the top.
The proof will be in the pudding. Andy Burnham has a very short window to turn this government around, end the chaos and deliver the change he has promised.
Zack Polanski, the Green party leader, was also positive about Burnham’s aims, but doubtful about whether he would give councils the money they need. Polanski said:
Rebalancing power is vital – but what good are powers if you can’t afford to use them?
Billionaire wealth has hit record highs in this country – while local authorities are shutting down libraries and youth centres because their funding has been cut to the bone.
Burnham must meet 3 key tests:
Will redistribution of power mean ditching the broken electoral system?
Will redistributed resources mean a real wealth tax and protecting the poorest?
Will a focus on local areas come with an end to the gutting of local authorities’ budgets?
But the SNP said Burnham was just making empty promises. Dave Doogan, the SNP leader at Westminster, said:
Andy Burnham is making the same empty promises, while keeping all of Westminster’s most damaging policies – Brexit, austerity cuts and Tory spending rules.
The SNP has been calling for meaningful devolution for years but there is nothing of substance for Scotland in these proposals – and nothing that will fundamentally improve people’s lives.
And here is Burnham’s peroration.
If people in 1844 could form the co-operative movement in Rochdale to lower the price of food, then why can’t we act now with similar courage to make life better? Imagine what things could be like if we succeed.
Imagine what it would feel like to live in a country wired to work for ordinary people, rather than against them.
Imagine if all local areas could build homes people can afford to the point where they could guarantee one for everyone.
Imagine if we could bring down the cost of energy for people and businesses, and the good things that would come from that.
Imagine good growth in every postcode and hope in every heart.
Well, imagine no more. Let’s make it happen.
Photograph: Temilade Adelaja/Reuters
Burnham suggests he would give people a ‘bit extra now’ to help with cost of living
Burnham said that he wanted to give people some “breathing space” on the cost of living immediately.
I know people can’t wait forever for change. I heard on doorsteps in Makerfield how people need a bit extra now to help with rising costs.
I will do my very best to deliver it and, whilst not taking risks with the public finances, will seek to give Britain some breathing space as soon as I can.
People need to be able to look forward to a night out or a holiday with the kids. People need hope.
Burnham says he wants to reform business rates to help pubs and high streets
Burnham said he wanted to reform business rates to help pubs and high street businesses.
To reinforce that, we will reform business rates to support pubs and high street businesses – businesses that bring social benefits to communities.
Burnham says he wants more higher density residential development in towns
Burnham said he wanted to see more higher density residential development in towns.
No 10 North will be able to support all places to turn around those towns, their high streets and the local centres, increasing footfall on the high street and protecting more green spaces from development.
Burnham promises biggest council housebuilding programme in postwar period
Burnham said No 10 North would also prioritise building more council homes.
Britain has lost almost 1.5m council homes since the 1980s, and around the same number of people are now on housing waiting lists and have been there for a very long time.
As a result, the country is in a housing trap.
We are forced to chase rents in the private rented sector through the benefits system. When governments try to control these costs by freezing local housing allowance, it makes families homeless and places unfunded pressures on councils when they have to pay for temporary accommodation.
Britain’s housing crisis is having a ruinous impact on its public finances.
So working with local areas, No 10 North will oversee the biggest council housebuilding programme since the postwar period.
We will use public land, vacant public land, to reduce costs.
Burnham said, where young people needed mental health support, that should be “provided as part of in-work support”.
He also said he wanted to devolve power over employment support to mayors.
Burnham calls for ‘complete rethink’ in schools, with technical education getting ‘parity’ with university
Burnham said he wanted to change the way schools operate so they are not entirely focused on getting pupils into university.
I take very seriously the findings of the recent report by Alan Milburn [on youth unemployment].
We need a complete rethink of how we support the next generation to succeed, and it has to start with the education system.
The days of a school system configured entirely around the university route will be brought to an end.
University is great for those who want it, but when are we going to focus on the life chances of those kids who want something different when the country hasn’t done that for a long, long time? People have argued over many years for an education system based on parity between academic and technical, and that is what we will build.
Burnham says more emphasis to be given to ‘social value’ when public contracts issued
Burnham said he wanted to change the way public procurement policy operated.
For too long, UK public procurement policy has been based on chasing cut price deals around the world, rather than helping our own British-based suppliers become more stable and competitive.
No more. From here on, every pound raised from taxpayers will work harder for them, and that approach will apply fully to the defence investment plan.
We will make sure that all eligible public contracts are subject to proper social value weighting.
And we will do that to make sure British-based companies are in a better position to win those contracts.
This change is essential given the need to build our own resilience in places across the country.
In an increasingly uncertain world, we need to safeguard sovereign manufacturing and production capability across the country in critical sectors like steel, defence, energy, food and farming, rather than just being prepared to let it go, as we have sadly done in the past.
In return, we will recycle maximum benefits for our communities and our residents, for instance by requiring a much greater supply of 45-day work placements and apprenticeships for young people.