Andy Burnham will set out his economic vision in his first major speech of his leadership bid, proposing to boost growth by handing more control to regional mayors. The Labour leadership contender, a long-standing proponent of devolution, is expected to argue that shifting power from Whitehall is essential to unlocking the economy.
But the plan faces criticism from former Treasury Permanent Secretary Lord Macpherson, who warned that splitting off part of the Treasury to the North risks “failing and wasting time”. “Machinery of government changes like this are very disruptive,” Lord Macpherson told The Standard.
“Andy Burnham will set out plans to give regional mayors more control for growth, while investor Paul Atkinson says people power is key.”
The contrasting views highlight a broader debate over the foundations of economic growth. Investor Paul Atkinson, speaking separately, emphasised that people power is the foundation of leadership that delivers growth. Atkinson, whose views were reported by The Scotsman, argued that taking the long view and investing in people is critical.
Burnham’s speech comes as he seeks to differentiate himself in the leadership race, focusing on devolution as a mechanism to spread prosperity beyond London and the South East. His proposal to give regional mayors more fiscal powers is intended to accelerate local decision-making on transport, housing and skills.
However, the Treasury split idea has been described by Lord Macpherson as a risky distraction. “It is very disruptive,” he repeated, cautioning against structural upheaval at a time when the government faces pressing economic challenges.
Atkinson’s comments, meanwhile, suggest that leadership must be built on empowering people rather than restructuring institutions. He advocates a long-term approach, putting people at the centre of growth strategies.
Whether Burnham’s devolution plans can deliver the promised growth without the disruption warned by Lord Macpherson remains to be seen. But the debate underscores a fundamental question: is growth driven by institutional reform or by the quality of leadership and investment in people?