Andy Burnham to argue London and the south ‘paying the price’ for north's economic failure
The soon-to-be Prime Minister is expected to announce plans to devolve money and power away from central government
Andy Burnham is expected to argue that economic divide between the North and South is costing the entire country, as he prepares to unveil a major plan to shift power away from Westminster.
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The Greater Manchester mayor, widely tipped to become prime minister next month, will use a keynote speech to outline proposals to hand significantly more funding and control to England’s regions.
Burnham is set to claim that long-standing underperformance in parts of the north and Midlands has created a system where wealthier areas, particularly London and the southeast, are effectively subsidising the rest of the country.
His solution centres on a major expansion of devolution, with regional mayors given greater authority over housing, post-16 education, welfare-to-work schemes and local economic strategy.
The proposals would see Whitehall departments relinquish substantial control, with budgets redirected to city regions and combined authorities to spend locally.
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Under the plans, ministers would be required to adopt a “devolution-first” approach, assessing which powers and funding streams could be transferred out of central government.
Burnham is also expected to signal that infrastructure investment and housing funding will increasingly be controlled at a regional level, including a larger share of the government’s affordable homes budget.
He will argue that giving local leaders more control will boost economic growth, pointing to Greater Manchester’s stronger performance since gaining devolved powers.
Figures are expected to be cited showing that Londoners contribute significantly more in tax than they receive in public spending, while regions such as the north receive more in spending than they generate.
Burnham’s allies say the aim is not to favour one part of the country over another, but to rebalance the economy so all regions contribute more equally to national prosperity.
The plans could also include allowing local authorities to retain more of the tax revenue they generate, including potential changes to business rates and, in the longer term, income tax.
However, critics have raised concerns that greater devolution could lead to uneven outcomes between regions, and create tensions if different areas pursue sharply different political and economic strategies.