Andy Burnham's New Government Department Reshapes UK Economy 2026

Andy Burnham has shaken up Whitehall by creating a powerful new prime minister’s department, the Office of the Prime Minister and Cabinet, to become the dominant driver of the UK’s economy. This restructuring merges parts of the Cabinet Office, Treasury, and housing ministry under one roof, signaling a major shift in how economic policy and regional growth are coordinated. Led by Burnham’s ally Louise Haigh, the new department will oversee No 10 operations in London, the forthcoming No 10 North in Manchester, and key strategy functions from previously separate ministries.

Key Changes in the Whitehall Restructuring

The Office of the Prime Minister and Cabinet centralizes power over local growth and devolution. Teams from the Treasury and Ministry of Housing, Communities and Local Government are being moved to the No 10 North unit, which will ultimately be governed by Haigh. However, sources stress that Housing Secretary Angela Rayner retains control over devolution policy itself—only strategy functions are transferred. This balance aims to reinforce Rayner’s role from the centre of government while avoiding a perceived demotion.

What Moves and What Stays?

• Local growth and devolution strategy moves from Treasury and Housing Ministry to No 10 North.
• Cabinet Office functions are split: some go to a new agency called OneGov, which handles HR, pensions, recruitment, and security vetting, controlled by Cabinet Secretary Antonia Romeo.
• Equality Office shifts to the Housing Ministry.
• Digital ID moves to DCMS.
• Public sector fraud authority moves to DWP.
• Investment security unit moves to the Department for Business, Innovation, Science and Trade.

Comparison of Old vs. New Whitehall Structure

The government stated that these moves ensure “local economic growth policy and regional empowerment are no longer isolated from one another.” No 10 North is now positioned as the “dominant driver of the UK’s economy,” a phrase repeated in official communications. The restructuring also includes relocation packages for civil servants willing to move north to Manchester.

Key Takeaways

• Centralization of power: The Office of the Prime Minister and Cabinet consolidates economic strategy across multiple Whitehall bodies.
• Regional focus: No 10 North becomes a hub for local growth, moving key staff from London to Manchester.
• Cabinet Office downsizing: Many functions are spun off to other departments or the new OneGov agency.
• Political maneuvering: Angela Rayner retains direct control over devolution, minimizing internal friction.
• Incentives for relocation: Civil servants are offered packages to relocate north, supporting the government’s levelling-up agenda.

FAQ

This shake-up marks one of the most significant Whitehall reorganizations in recent years. By centralizing economic strategy under the OPMC and pushing regional growth to No 10 North, the government hopes to accelerate levelling-up and make government more effective. Businesses and local authorities should monitor these changes closely, as they will impact how public investment, devolution deals, and economic policies are delivered across the UK.