Deputy Labour leader Lucy Powell has defended Andy Burnham’s proposed “No 10 North” as a plan that will deliver a “very powerful reorganisation of government.”
Her comments come as ministers push ahead with one of the biggest overhauls of English local government in decades, with Burnham expected to enter Downing Street later this month.
Labour argues the reforms will help deliver faster regional growth by shifting power away from Whitehall and into the hands of regional leaders across England.
Burnham has made devolution the centrepiece of his leadership campaign, promising to relocate parts of government to Manchester and hand regional leaders greater powers over planning, transport, housing and economic development.
Powell sought to reassure businesses and local leaders that the reforms would not impose a single model across England, arguing regions should build economic strategies around their own industrial strengths.
“We have a particular economy here that began in computing and digital,” the Manchester Central MP told Sky News. “We’ve got a real knowledge economy here, advanced manufacturing as part of that too.”
Powell added that flexibility was central to the whole approach, noting that “other places have got an economy that maybe is built around nuclear power or shipbuilding or renewable energy or an economy built around a university.”
“It’s not a one-size-fits-all… This is about taking power from Whitehall to distribute it around the country, and this will be a very powerful reorganisation of government in order to deliver that lifeblood back into every community and every postcode across the country,” she said.
Ministers are preparing to approve sweeping council reorganisations across up to 16 areas, including Oxford, Cambridge, Leicester, Nottingham, Exeter, Stoke and Brighton, before Starmer leaves office.
Local government secretary Steve Reed confirmed the reforms were “definitely” going ahead, arguing that council reorganisation and devolution “go hand in hand” if Burnham is to fulfil his pledge to “rewire” the British state.
The plans would replace much of England’s existing two-tier council structure with larger unitary authorities designed to work alongside expanded metro mayor powers across multiple regions.
Ministers have claimed the new model will simplify planning, speed up infrastructure projects and give regional leaders more control over attracting private investment.
More than 18 million voters could head to the polls in newly expanded council elections next May, giving Labour an early verdict on whether its devolution agenda is resonating with the public.
Jonathan Carr-West, chief executive of the Local Government Information Unit, described the elections as a potential “proof of concept” for Burnham’s programme, though he warned some councils may lack the “political or logistical headspace” to make devolution work effectively.
The changes also come as Burnham attempts to convince both markets and business that constitutional reform can support growth rather than distract from it.
London currently generates around a third of corporation tax receipts, while many regions continue to lag significantly behind on productivity and private investment, underlining the scale of the challenge ahead.