Regional mayors are set to take a leading role in the UK’s economic policy as part of a historic power shift under the new prime minister. The revival of the National Economic Council (NEC) and the creation of ‘No 10 North’ mark the most significant rebalancing of power in decades, according to Andy Burnham.
What is the National Economic Council (NEC)?
The NEC was originally established by Gordon Brown during the 2008 financial crisis to coordinate government action. Now, the prime minister has revived it to drive economic growth with the same urgency. The inaugural meeting, chaired by Andy Burnham, will bring together senior ministers and regional mayors to embed devolution at the heart of government.
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No 10 North: A new era of devolution
Burnham argues that while Whitehall departments have opened regional outposts, real decision-making has remained in London. No 10 North aims to correct this by operating from Manchester weekly. This move places power in the hands of local leaders who understand their regions best. The prime minister stated, “No one in government loses when power is shared.”
How will the new structure work?
The Office for the Prime Minister and the Cabinet, led by Louise Haigh, will oversee both No 10 North in Manchester and the London operation. This new department absorbs parts of the Cabinet Office, Treasury, and housing ministry to become the dominant driver of the UK economy.
Comparison: Old vs New Model of Economic Governance
| Aspect | Old Model (London-centric) | New Model (No 10 North) |
|---|---|---|
| Decision-making location | Whitehall, London | Manchester & London weekly |
| Role of regional mayors | Advisory only | Co-chairs of NEC, policy leads |
| Economic focus | National top-down | Regional growth with treasury alignment |
| Urgency level | Routine | Crisis-level (mimics 2008 approach) |
Key takeaways
- Regional mayors will co-chair the NEC alongside senior ministers.
- No 10 North operates from Manchester, driving growth from outside London.
- The new Prime Minister’s department consolidates economic power.
- Critics warn the plan must prove it is not tokenistic.
- First weekly government meetings in Manchester begin this month.
FAQ
What is No 10 North?
No 10 North is the prime minister’s Manchester-based office, intended to decentralize government decision-making and give regional leaders more influence over UK economic policy.
How will regional mayors affect UK economic policy?
Regional mayors will co-chair the National Economic Council and work directly with the Treasury to shape growth strategies tailored to their regions, shifting away from a London-centric approach.
Will this change impact local businesses?
Yes. Local businesses can expect more responsive investment, streamlined planning, and regional economic priorities that reflect their needs, as mayors gain direct policy influence.
This bold move toward devolution could redefine how the UK is governed. By placing regional voices at the center of economic decision-making, the government aims to unlock growth across the nation. All eyes will be on the first meetings in Manchester to see if this promise translates into tangible change.
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