Burnham reveals No 10 North to spearhead ‘biggest redistribution of power UK has seen’ in first Commons address

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Mr Burnham said he recognised cross-party call for a devolution deal, and understood concerns about the potential emergence of a two-tier England between those with devolved power and those without.

Addressing the House of Commons on Tuesday afternoon, the PM said he has asked Number 10 North to start working with Cornwall Council on a devolution deal “with or without an elected mayor”.

He was also seen to extend the offer to other areas of the country, as the Labour leader moved forward with his pledge to move power away from centralised government.

"In July, we published a statement on the next stage of English devolution," Mr Burnham said.

"And it will include powers long requested by mayors, such as post-16 technical education, employment support, and fiscal devolution, starting with the ability to set an overnight visitor levy to commence towards the end of financial year 27/28."

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The Prime Minister said the driving force behind his devolution plans would be Number 10 North. The northern branch of the Prime Minister's official office was launched in Manchester to move political power and decision-making away from London.

Mr Burnham said Number 10 North will "oversee the rewiring of the British state, the rebuilding of resilience in our communities, and the reindustrialisation of our regions".

He continued: "Its creation was one of the first acts of this administration, and I believe that in time it will be seen as one of its most significant.

"It is a clear answer to the question with which this country has long wrestled: who in government drives growth?"

Mr Burnham said the state that has grown "too large at a national level", now needs to redirect civil service capacity regionally and locally.

In July, Mr Burnham announced that English mayors will be allowed to keep a share of the taxes collected in their area.

The Prime Minister said by letting mayors keep a slice of income tax and business rates, he will “make good” on his pledge to “take power out of Westminster and carry it into every postcode in the country”.

Details of the reforms are expected to be announced in a white paper, published when Chancellor John Healey presents his first budget in the autumn.

But Mr Burnham, who was mayor of Greater Manchester for about nine years, said the policy would be designed so that “every local leader will have the power and resources to improve public transport, build homes and create jobs”.

Tuesday's Commons address marked the first major test for the PM, with Burnham also confirming prisoners convicted of manslaughter, death by dangerous driving and indecent assault will remain ineligible for early release.

The government previously announced that people convicted of manslaughter, death by drunk or dangerous driving, rape, grooming and historic child sexual offences will now be exempt from the scheme.

The Prime Minister was also seen to commit to bringing forward legislation within this parliamentary session that will allow people to move from leasehold to commonhold home ownership.

Reforming what Burnham described as an "unfair system”, the move could impact millions of homeowners across England and Wales.