Andy Burnham has created a powerful new prime minister’s department, shaking up Whitehall by merging parts of the Cabinet Office, Treasury and housing ministry into a dominant economic driver. The Office of the Prime Minister and Cabinet, led by his ally Louise Haigh, will oversee No 10 operations in London and the forthcoming No 10 North in Manchester.
The New Office of the Prime Minister and Cabinet
This new department centralizes local growth and devolution teams from the Treasury and Ministry of Housing, Communities and Local Government under Haigh’s authority. However, housing secretary Angela Rayner retains control over devolution policy, with only strategy functions transferred. The government states this move ensures local economic growth policy and regional empowerment are no longer isolated, making No 10 North the dominant driver of the UK’s economy.
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Key Structural Changes in Whitehall
| Department/Agency | New Location/Function |
|---|---|
| Cabinet Office (parts) | Moved to OneGov agency (HR functions) |
| Equality Office | Transferred to Ministry of Housing |
| Digital ID | Moved to Department for Culture, Media and Sport |
| Public Sector Fraud Authority | Transferred to Department for Work and Pensions |
| Investment Security Unit | Moved to Department for Business, Innovation, Science and Trade |
Implications for the UK Economy and Devolution
This shakeup repositions Whitehall to prioritize regional economic growth. By moving teams to No 10 North, the government aims to bridge the gap between London and northern regions. Civil servants will be offered relocation packages to Manchester, signaling a long-term shift in government operations.
- Centralization of economic strategy under the Prime Minister’s direct oversight.
- Devolution of powers remains with Angela Rayner, but strategy is coordinated from the centre.
- OneGov handles HR, pensions, recruitment and security vetting across departments.
- Relocation packages encourage civil servants to move north, boosting local economies.
FAQ
What is the purpose of the new Office of the Prime Minister and Cabinet?
It consolidates teams from the Cabinet Office, Treasury and housing ministry to drive economic growth and devolution under a single authority, making No 10 North the dominant economic driver.
Who leads the new department?
Louise Haigh, a close ally of Andy Burnham, oversees the department as the enforcer of the Prime Minister’s agenda.
How does this affect Angela Rayner’s role?
Angela Rayner retains control over devolution policy. Only strategy functions are transferred, reinforcing her role from the centre of government.
This restructuring marks a significant shift in Whitehall governance, with potential long-term impacts on regional equality and economic performance. Stay tuned to GrandGoldman for further analysis.
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