Updated ,first published
London: Labor MP Andy Burnham has pledged a “10-year mission” to raise living standards if he becomes Britain’s prime minister within weeks, declaring he wants to rebuild industries and revitalize the regions by giving more power to mayors across the country.
Burnham declared that the political system was “broken” after years of declining household wealth and political unrest, and vowed to be the “cycle breaker” who could turn the country around.
But his pledges were made in a major speech delivered a week after Prime Minister Keir Starmer spoke he would come downit was quickly criticized for lacking detail on how they would work and how they would boost economic growth.
In one policy tip, he suggested local councils could set up “growth funds” with billions of dollars to invest in their local areas – an idea that could lead to more local debt at a time when the national government is facing constraints on its borrowing capacity.
Burnham, who has spent the past nine years as Mayor of Greater Manchesterhe set broad themes in the speech but said specific decisions, and the appointment of ministers, would wait until after the leadership was settled.
“We will create a more balanced environment with a clearer purpose to strengthen all parts of the country and keep a laser-like focus on growth and regeneration – healthy growth,” he said.
This would mean overhauling essential services to restore public ownership, he said, as well as government measures to “refresh” the economy after years of losing manufacturing jobs.
“We need to protect independent manufacturing and production capacity throughout the country in key sectors such as steel, defense, energy, food and agriculture,” he said.
“Instead of being willing to give it up, as we have sadly done in the past.”
Burnham warned of the need to increase the number of apprentices and said the education system should be reformed so that trades are considered as relevant as university degrees.
In an important acknowledgment of the policy challenge of moving young people off welfare and into work, he hinted at reforming social security payments without making any concrete commitments.
“People have argued for years about a balanced education system between the academic and the technical, and that’s what we’re going to build, giving every young person growing up here a clear path into a re-industrialized Britain,” he said.
“Where young people need mental health support, it should be offered as part of job support.”
The idea of giving more powers to local governments is not new, given similar language from then-prime minister Boris Johnson in a plan known as “stepping up the scale” in 2021, when he said local governments would have more scope for decision-making.
Burnham, however, drew attention to a related promise to transfer some of the powers of the prime minister’s office to Number 10 Downing Street in London – next to the main civil service departments near Whitehall – so that the new government unit would be responsible for the north of England and other areas outside the capital.
“We will bring a greater balance of power, our country has seen it is time for Whitehall to accept that growth cannot be dictated from the top down,” he said.
“Instead, it can only be promoted from the bottom up. It comes from being able to bring about real change at the grassroots level.”
Burnham called his proposed new office “Number 10 North” and the phrase dominated media coverage of his speech, although he did not explain any details about how it would work.
“We will bring together public and private investment at a grassroots level and help all areas set up Smart Growth Funds, as we have done here in Greater Manchester,” he said.
The Good Growth Fund set up during his time as mayor has used investment from the Greater Manchester Pension Fund and borrowing against future growth in local government business rates. The fund has around 2 billion pounds ($3.9 billion) to invest.
Burnham cited housing as a priority and promised more construction, but did not say whether this would be funded by Better Growth funds or another source of money.
“Britain’s housing crisis is having a negative impact on its public finances,” he said.
“So, working with local areas, Number 10 North will manage the biggest council housing scheme since the post-war period. We will use public land, open public land, to keep costs down.”
Local fundraising to be managed by council leaders could be a way to reduce pressure on Westminster to find investment money in local areas. The UK has around £2.8 trillion in public sector debt and posts an annual budget deficit, limiting its ability to borrow further.
Conservative Party leader Kemi Badenoch criticized Burnham for taking too long to set comprehensive policies when Britain had to deal with the war in Ukraine, the war in Iran, a slowing economy, high public debt and high energy prices.
“Andy Burnham is already prime minister in everything but name. He needs to act like a leader, stop rumours, get into Number 10, name his cabinet and come to parliament to tell the country what he plans to do,” he said.
“Whether Andy Burnham likes it or not, Britain is in dire economic straits. Our national debt is almost 100 per cent of GDP, our credit card is maxed out. We spend more on debt interest alone than we do on defence.
“Any sign that Andy Burnham intends to borrow more money will mean higher borrowing costs immediately.”
The British reform leader Nigel Farage said that the devolution of powers to the regions and councils did not bring results in the past.
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David Crowe is the Europe correspondent for The Sydney Morning Herald and The Age.Connect through X or email address.
