Andy Burnham has created a powerful new prime minister’s department, taking in parts of the Cabinet Office, Treasury and housing ministry to become the “dominant driver of the UK’s economy.” In one of his first acts, Burnham established the Office of the Prime Minister and Cabinet, led by his ally and enforcer Louise Haigh, which will oversee the No 10 operation in London, the forthcoming No 10 North in Manchester, and parts of the Cabinet Office.
What the New Department Means for Whitehall
The restructuring sends teams responsible for local growth and devolution from the Treasury and Ministry of Housing, Communities and Local Government to the No 10 North unit, ultimately overseen by Haigh. However, sources stressed that Angela Rayner, the housing secretary, would keep hold of devolution policy, with only strategy functions transferred from the Ministry of Housing. This move aims to highlight that her role is not being downgraded but reinforced from the centre of government.
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Key Changes in Government Structure
In a statement about the breakup of the Cabinet Office and other Whitehall changes, the government said: “This ensures that local economic growth policy and regional empowerment are no longer isolated from one another, establishing No 10 North as the dominant driver of the UK’s economy.” Other parts of the Cabinet Office will move into a new agency called OneGov, controlled by the cabinet secretary, Antonia Romeo, which will essentially perform government HR functions such as pensions, recruitment and security vetting.
Comparison of Departmental Moves
| Function | Previous Department | New Department |
|---|---|---|
| Local growth and devolution | Treasury & MHCLG | No 10 North |
| Equality office | Cabinet Office | Ministry of Housing |
| Digital ID | Cabinet Office | DCMS |
| Public sector fraud authority | Cabinet Office | DWP |
| Investment security unit | Cabinet Office | Department for Business |
Key Takeaways from the Restructuring
- Andy Burnham creates a powerful new prime minister’s department to drive economic growth.
- Louise Haigh will lead the Office of the Prime Minister and Cabinet, overseeing both London and Manchester operations.
- Angela Rayner retains devolution policy, with only strategy functions moved to No 10 North.
- OneGov will handle government HR functions like pensions and recruitment.
- Relocation packages offered to civil servants moving north to No 10 North.
The government will also start offering relocation packages to civil servants willing to move north to the soon-to-be created No 10 North operation. This initiative aims to decentralize power and boost regional economies, marking a significant shift in how Whitehall operates.
FAQ
What is the new government department created by Andy Burnham?
Andy Burnham created the Office of the Prime Minister and Cabinet, which combines parts of the Cabinet Office, Treasury, and housing ministry to drive the UK economy.
Who will lead the new department?
Louise Haigh, an ally and enforcer of Andy Burnham, will lead the new department and oversee No 10 operations in London and Manchester.
What happens to the Cabinet Office?
Parts of the Cabinet Office are moving into a new agency called OneGov, which will handle HR functions, while other functions are being transferred to various departments.
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