Burnham’s devolution plans: A new era for UK governance

Andy Burnham is set to announce ambitious plans for a 'No 10 North' and a 10-year mission to boost living standards across the UK.

In his first major policy speech since launching his bid for prime minister, Andy Burnham is set to unveil plans for a ‘No 10 North’. This new body aims to drive growth across every nation and region of the UK placing devolution at the core of his governance strategy.

Speaking in Manchester, Burnham will outline a 10-year mission to elevate living standards and present proposals on youth employment, with the goal of lifting Britain back up to where it should be.

Burnham’s vision for decentralized governance

Burnham’s speech is expected to emphasize the need for decision-making to be pushed to regions and local communities.

He will promise good growth in every postcode signaling a shift towards more localized governance. This approach aligns with his commitment to fiscal devolution which aims to empower regional authorities with greater financial control.

In the event no other Labour MP puts themselves forward to be leader, Burnham is expected to become prime minister on 20 July.

He has faced calls from opposition parties to set out his plans, confirm his cabinet appointments, and clarify whether he will deviate from Labour’s 2026 manifesto.

Economic policies and fiscal responsibilities

Burnham has signaled his intention to adhere to the fiscal rules set out by Chancellor Rachel Reeves, whom he is expected to replace. These rules stipulate that day-to-day government costs will be paid for by tax income rather than borrowing, with a commitment to see debt falling as a share of national income by the end of this parliament in 2029-30.

Despite pressures on the government’s budget and high borrowing costs, Burnham remains committed to these fiscal responsibilities. Speaking at a conference in London on 25 June, Reeves urged Burnham to stick to her economic approach, stating it was beginning to bear fruit and backing his approach to fiscal devolution.

Some Labour MPs on the left of the party have called for Burnham to relax Reeves’s self-imposed rules to allow for more spending. He is reported to be considering Ed Miliband, David Miliband, Wes Streeting, or Shabana Mahmood as possible replacements for Reeves.

Defense spending and national security

Burnham has also come under pressure to commit to increased defense spending. The government is due to publish its defense investment plan (DIP) before a new prime minister succeeds Sir Keir Starmer, which will set out a multi-billion funding increase.

On Sunday, the former Chief of the Defence Staff Admiral Sir Tony Radakin called on Burnham to commit to increasing defense investment to 3.5% of GDP by 2035 if he becomes prime minister. Radakin emphasized the importance of keeping our country safe and investing in what really keeps us safe, likening Burnham’s role to that of a wartime prime minister.

Responding to the upcoming speech, Conservative Party chairman Kevin Hollinrake criticized Burnham’s focus on devolution, stating that his big idea is to shuffle power between politicians rather than address welfare reforms, cut taxes, or fund defense needs. Reform UK and Liberal Democrat leader Sir Ed Davey also expressed skepticism, with Davey warning that Burnham has only a very short window to turn this government around.