Andy Burnham, the likely next prime minister of the UK, has placed devolution, a massive increase in council house building and business rates reform at the heart of a first speech outlining his vision for the country.
Labour prime minister Sir Keir Starmer announced he was stepping down two weeks ago. If no other Labour MP makes a leadership bid to replace him, Burnham is expected to become prime minister on 20 July.
In a wide-ranging address in which he promised a massive investment programme while stating he would still stick to the "fiscal rules", Burnham said he would drive the levelling up of the country via regeneration, reform of utilities including using renationalisation, and reindustrialisation.
Burnham said what he is proposing amounts to a "10-year mission" to raise living standards across the whole country with a "No 10 North" supporting his three-pronged plan in the regions.
That means a base in Manchester for 10 Downing Street, the seat of executive power in the UK since the 18th century, which will co-ordinate government at a national and local level and will be “the conduit through which we redistribute power and resources across the UK".
Speaking in Manchester, Burnham added: "But here’s the important thing; it will only be based here. The job of No 10 North will be to make power flow into the Midlands, into the South West, into the East of England and, yes, into London."
His vision will be driven by deeper devolution that gives mayoral combined authorities more control over powers and finances, he said.
He says the proposals will remain consistent with Labour's 2024 manifesto but will create a streamlined state with a clear purpose of levelling up the country with a "laser-like focus on growth and regeneration".
On housing, Burnham said the country is "in a housing trap" and a housing crisis that is having a "ruinous" impact on the UK's public finances.
He said Number 10 North would oversee "the biggest council house building programme since the post-war period".
He added: "We will use public land, vacant public land to reduce costs." He would also promote higher density residential development in towns and protect "more green spaces" from development.
On defence, with Labour's much-anticipated Defence Investment Plan still to be published, Burnham said every pound raised from taxpayers will "work harder for them", which will apply "fully" to the Defence Investment Plan.
He pledged to restore “sovereign manufacturing” capabilities in sectors like steel, defence, energy and farming.
He says he will make sure all eligible public contracts are subject to "proper social value weighting" and ensure British-based companies are in a better position to win contracts.
On industry, he said: "We will support every region to set clear and credible industrial ambitions and provide the support to achieve them, encouraging more across UK partnership between places with complementary industrial clusters.
"As Cambridge and Manchester have done on life sciences, we will consolidate public and private investment at a place-based level and help all areas establish good growth funds, as we have done here in Greater Manchester."
Burnham also promised major reform of business rates to revive high streets but provided little detail. He said: "We will reform business rates to support pubs and high street businesses – businesses that bring social benefits to communities."
Vanessa Hale, chief executive, Real Estate:UK, said in a response: "With a stable and supportive policy framework, we can build the affordable and higher density homes that Andy Burnham says he wants.
"However, the full benefits of this will only be delivered if the same radical approach to reforming the role of government is also applied to how government works with the private sector, including full recognition of the challenges that the real estate industry faces, such as the viability crisis which has effectively stalled building activity across the country, that enhanced local and regional authorities need the extra resourcing to match the scale of their ambition, and an understanding that the need for stability is paramount for those seeking to make long-term investment into the UK.”
Paul Rickard, chief executive, Pocket Living, said: “It is absolutely right to focus on how the UK can continue to support and grow its key industrial sectors, such as life sciences and our defence-industrial complex, with empowered regional mayors and local authorities sitting at the heart of this. This enhanced devolution of powers and focus on innovative place-first good growth, including large-scale regeneration and housing, forms part of the bold thinking that we need to see happen and it is very pleasing to see housing being directly linked to the success of the UK’s overall economic strategy.
"The focus on public partnership and increased housing powers to all regions, including London, is likewise welcome. Whilst the aspiration to super-charge council housing is admirable, alongside this we also need to deliver homes for key workers and young professionals if our regions are to truly prosper and SMEs play an instrumental role in delivering local housing for local people and local place-based success.”
Zoe Stollard, partner specialising in energy at law firm Browne Jacobson, said: “Andy Burnham's commitment to reform of essential utilities as part of his 10-year mission signals that energy policy will remain a central pillar of the government's agenda, regardless of who sits in Downing Street.
“For investors and developers operating in the energy sector, the emphasis on long-term thinking is welcome. The industry needs policy stability and a clear direction of travel to unlock the capital required for the energy transition. What will be critical, however, is the detail behind the rhetoric.
“Reform of essential utilities can mean many things, and the market will be watching closely to understand whether Burnham's vision translates into concrete regulatory and legislative action. Combined with his devolution agenda, there is also a real opportunity to accelerate regional energy projects by giving local authorities and mayors greater decision-making power, but that will only work if it is backed by the right funding mechanisms and planning frameworks.”