Andy Burnham, the likely next Prime Minister after Sir Keir Starmer's resignation, delivered his first major speech in Manchester, pledging the 'biggest rebalancing of power our country has seen' and vowing to create 'good growth in every British postcode.' His proposals, including a 'Number 10 North' based in Manchester to shift decision-making from Whitehall, have been met with cautious optimism from business leaders across the North and the UK.
Key Promises: Procurement, Education, and Housing
Burnham outlined plans to overhaul public procurement, stating: 'For too long, UK public procurement policy has been based on chasing cut-price deals around the world rather than helping our own British-based suppliers become more stable and competitive. No more. From here on, every pound raised from taxpayers will work harder for them, and that approach will apply fully to the defence investment plan.' He also committed to backing 'scientists, technologists, entrepreneurs and creatives,' a major house-building programme, and a 'complete rethink' on education. Rejecting the 'trickle-down model,' he said: 'We will create a more streamlined state with a clearer purpose to power up all parts of the country and put a laser-like focus on growth and regeneration, good growth.'
Northern Powerhouse Partnership: Bold Commitment to Devolution
Henri Murison, chief executive of the Northern Powerhouse Partnership, praised the speech: 'Today Andy Burnham has made a bold commitment to further devolution. From giving places the tools to tackle economic inactivity to devolving post-16 skills, our verdict on these proposals are that they would help reduce the rising costs of welfare and the ill-health that places increasing pressure on the NHS. Alongside investment in infrastructure to drive productivity, raise wages and increase tax revenues, they would help turn the structural fiscal deficits seen across many parts of the North into surpluses that can be reinvested in future regional growth.' Murison added that the 'No.10 North' would ensure effective use of relocated civil servants to places like Darlington, York, and Manchester, strengthening decision-making and bringing government closer to communities.
British Chambers of Commerce: Consistency and Growth Test
Shevaun Haviland, director-general of the British Chambers of Commerce, urged caution: 'Firms need consistency, clarity and stability from policymakers, if business confidence is to be improved. Businesses will judge Andy Burnham’s plans on whether they deliver the boost to investment, productivity and trade desperately needed to unlock growth. As our recent report outlined, government must always ask whether policy passes a ‘growth delivery test’ to encourage firms to invest and grow.' She stressed that devolution must have local business at its heart and that fiscal devolution must not mean further costs on business, warning that new local business taxes and visitor levies would stifle economic growth. 'The difficult truth is, whoever leads the UK, the primary challenge remains the same – delivering growth.'
Net Zero North West: Reindustrialisation and Regional Strengths
Jane Gaston, CEO of Net Zero North West, highlighted the region's economic significance: 'Our recent Why Industry Matters report highlighted that the North West contributes £270.8 billion to the UK economy, generates £68.5 billion in exports and supports 337,000 manufacturing jobs. The region is already one of the UK’s most significant industrial economies and has a critical role to play in safeguarding sovereign capability, strengthening energy security and delivering the clean energy transition.' She welcomed the 'Number 10 North' proposal but stressed that any national plan for reindustrialisation must fully recognise the North West's industrial strengths alongside other key regions, including manufacturing, chemicals, advanced engineering, and energy clusters.
Enterprise Britain: Support for Start-ups and Scale-ups
Eva Barboni, executive director of Enterprise Britain, said: 'There were signals in Andy Burnham’s speech that he recognises the critical role start-ups and scale-ups play in delivering a better future for Britain. We welcome his commitments to back Britain’s entrepreneurs, build clusters of innovation around our world-leading universities, and ensure that we capture the full value of British businesses. These commitments must be followed by a clear plan of action. Devolution alone will not automatically deliver growth. We need bold measures to unlock the capital British start-ups and scale-ups need to grow, ensure they can hire the right talent at the right time, and tear down the barriers that are holding ambitious businesses back.'
Real Estate Sector: Place-Based Growth and Stability
Vanessa Hale, chief executive at Real Estate:UK, emphasised the sector's role: 'The real estate sector has a critical role to play in boosting growth across the UK, working not only with national government, but also with newly empowered mayors and local leaders through genuine partnership working to deploy place-based funds, facilitate the development of industrial clusters, deliver the successful regeneration of places, and build new homes as part of a place-first, ‘good growth’ approach. With a stable and supportive policy framework, we can build the affordable and higher density homes that Andy Burnham says he wants.' She warned that full benefits require radical reform in how government works with the private sector, addressing viability crises and ensuring enhanced resourcing for local authorities.
UK Private Capital: Public-Private Investment Partnerships
Michael Moore, chief executive at UK Private Capital, said: 'We welcome Mr Burnham’s focus on public and private investment working hand in hand to make the UK an innovation nation. Private capital has a vital role to play in every nation and region of the UK, backing businesses, unlocking investment and helping local economies realise their full potential. By bringing decision-making closer to the communities it affects, and by strengthening partnerships between local leaders, businesses and private capital, investors such as our members can help more scale-up businesses and innovative spin-outs across the country grow and commercialise their ideas. Such focus on place-based collaboration and investment as a baseline for the UK economy presents a serious new opportunity for building a more dynamic and growing economy.'
