When Andy Burnham becomes prime minister later this month, he will inherit a country where power has long been hoarded in London. His answer is to “rewire” Britain – devolving power and money from Whitehall to local leaders, and potentially reviving the kind of state ownership not seen since the 1940s. The scale of the change, supporters say, could be the biggest transfer of power in modern British history.
Burnham, the former Greater Manchester mayor, is widely expected to succeed Sir Keir Starmer as Labour leader and prime minister after the contest concludes on 20 July. In a speech on 30 June, he pledged to create a “No10 North” in Manchester as the nerve centre of a rewired Britain. His core promise is to hand more powers to mayors and local leaders, arguing that “growth cannot be ordered from the top down – it can only be nurtured from the bottom up”.
“Explains Andy Burnham's plans to devolve power and potentially nationalise industries, inspired by Attlee's postwar government.”
Cabinet ministers have already signalled support. Darren Jones, the chief secretary to the Prime Minister, said Burnham’s devolution plans are a “clear warning to Whitehall” and that government departments could “shrink” as power flows out. Jones also backed the idea of a “No10 North”, though he urged future prime ministers to strengthen the centre by creating a department for the prime minister in London. Angela Rayner, the former deputy PM and a likely member of Burnham’s cabinet, has echoed the call to “rewire England”. In a lecture on 1 July, she said Whitehall empires “hoard their own power” and that real devolution means ending the “begging-bowl culture” where regional politicians ask permission to run their own bus routes.
Burnham’s vision draws heavily on the postwar Labour government of Clement Attlee, which nationalised 20% of the economy between 1945 and 1951. Attlee’s government took over coal, railways, steel, and created the NHS – all inspired by Labour’s original Clause IV commitment to “common ownership of the means of production”. Burnham has not yet spelled out which industries he might nationalise, but the Guardian has reported that he sees state ownership as part of the solution to Britain’s economic problems, much as Attlee did. The country’s high debts and private companies that put profits before investment create echoes of 1945.
For UK readers, the implications are practical. If Burnham’s plans succeed, decisions about buses, housing, and economic development will shift from Whitehall to local mayors and councils. Rayner, tipped to become housing secretary, has argued that councils need devolved budgets to fix potholes and deliver regeneration. Supporters say this would boost growth in every region, not just London. But critics warn of duplication – and the risk that local leaders may lack the capacity or accountability to handle new powers.
Q: What is devolution and how will Andy Burnham change it? Devolution is the transfer of powers and funding from central government to regional or local bodies. Burnham wants to go further than any previous prime minister by creating a “No10 North” in Manchester and giving mayors control over areas such as transport, housing, and skills. Darren Jones has said this is a “clear warning” to Whitehall that its role will shrink.
Q: Will Burnham nationalise industries like Attlee did? Burnham has not announced specific nationalisation plans, but he has drawn inspiration from Clement Attlee’s postwar government, which nationalised 20% of the economy. The Guardian reports that Burnham sees state ownership as part of the solution to Britain’s economic woes, and Labour’s original Clause IV called for common ownership of key industries. Nationalisation of energy, water, or railways is possible but not yet confirmed.
Q: Who is Angela Rayner and what role will she play in a Burnham government? Angela Rayner was deputy prime minister under Sir Keir Starmer and is expected to return to government under Burnham. She has been tipped for housing secretary, and in a recent lecture she called for “real devolution” to end the “begging-bowl culture”. She also warned that Labour must be bold to defeat Nigel Farage and Reform UK.
What happens next? The Labour leadership contest ends on 20 July, when Burnham is expected to become prime minister. He will then begin forming a cabinet – Rayner is likely to have a key role – and start implementing his devolution agenda. The autumn budget may include details of how funding will follow powers. Whether Burnham will also push for large-scale nationalisation remains to be seen, but the Attlee precedent is clearly on his mind.