Burnham ally says shift of power from London is 'badly needed' and says business rates devolution is 'very strong probability'
The economic advisor said a shift of power outside of London which could be seen under a Burnham government is "greatly needed"
One of Andy Burnham's close allies Lord Jim O'Neill has suggested there could be a shift of power away from London under a government led by the new Makerfield MP.
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Lord O'Neil told LBC that there was also a strong possibility of a business rates devolution under a Burnham government.
The new MP was sworn in at Westminster on Monday following the resignation of Sir Keir Starmer and is widely tipped to become the new Prime Minister after Wes Streeting said he wouldn't stand in any leadership contest.
Lord O'Neill said he thinks Labour backbenchers would support Burnham's economic agenda, and played down speculation over who could be appointed his Chancellor.
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Lord O’Neill told Tonight with Andrew Marr that a shift of power outside of London under a Burnham government is "badly needed".
Asked about the possibility of a Burnham government devolving business rates and income tax, Lord O’Neill, who served as a key economic adviser of the former Greater Manchester Mayor, said: "I'd almost describe it as constitutional devolution.
"In many ways what we've had the past 12, 13 years is tiptoe with little drip feeding bits of 'if you're good, you can have a little bit more.'
"This would be a whole new level. Business rates devolution is a very strong probability.
"I think exploring aspects of income tax is possible, it is definitely something that would be on the agenda to study in a serious way.
"I think some parts of some departments' responsibilities here [in Westminster] are very likely to be devolved, like adult skills being probably the classic.
"As I often say, why does anybody in Westminster think they know what the adult skills needs in Rotherham are, and assume they're the same as in Reading?
"They're completely different."
Responding to reports that Burnham would like to move part of the No10 operation, to Manchester, he told Andrew: "Let's wait and see what he has to say next week, or you should try and get him on to answer that.
"But if that's what he's going to suggest and do, I think it would be fantastic."
Reports emerged on Tuesday that Burnham would likely replace Rachel Reeves in his cabinet, and the Chancellor was pictured looking downcast on Monday during his oath.
But Lord O'Neill cooled suggestions that a new appointment could signal Burnham would be "moving sharply to the left".
He said: "I think he should just say 'calm down, just wait until I've made my mind up about what I'm doing.'
"Our history is littered with pretty bad relationships between Prime Ministers and Chancellors so him guaranteeing the job to somebody that, amongst other things, might want to be sitting in the job next door at some point soon might not bve a very sensible way to go about things."