Andy Burnham, set to become prime minister on 20 July, plans to spend part of his working week in Manchester and create a new “No 10 North” unit in the city – a move that would make him the first PM since Harold Wilson not to reside primarily in Downing Street.
In his first speech since launching his Labour leadership bid, Burnham said the unit would “oversee the biggest rebalancing of power our country has ever seen”, devolving control over housing and transport to English regions. “The political direction I set will not be up for negotiation,” he declared. The last prime minister not to live in Downing Street at all was Lord Salisbury at the end of the 19th century.
“Andy Burnham plans to split his time between Manchester and London, hinting at warehouse tax rises to fund pub cuts.”
The announcement came as Burnham, in his first media interview since announcing his candidacy, signalled a possible tax shakeup. Speaking to LBC’s Andrew Marr, the recently elected Makerfield MP said there was “some room” for movement on tax, suggesting business rates on warehouses could be increased to fund tax cuts for pubs and high-street businesses. But he insisted he would stick to Labour’s 2024 manifesto pledges not to raise VAT, income tax or national insurance.
Burnham defended his economic credibility, saying he would not be “indisciplined” with public finances, and pointed to his record as Greater Manchester mayor, where finances were “rock solid”. The remarks came after he faced past criticism for arguing the UK had “got to get beyond this thing of being in hock to the bond markets”.
One of the biggest challenges awaiting him is funding a £15bn defence increase announced by outgoing PM Sir Keir Starmer this week, which did not spell out full funding. Whoever Burnham picks as chancellor will need to find at least £4.7bn in savings from other departments in autumn’s first Budget. Conservative leader Kemi Badenoch accused Starmer of “leaving this mess to his successor”. Asked by Marr if he knew of the funding gap before the plan was published, Burnham said: “I wasn’t in all of the discussions, but to be fair, the government had had an internal process ongoing… I will take my responsibilities fully to fund the defence investment plan.”
On welfare, Burnham ruled out “crude cuts to benefit levels that just put people who are struggling in even worse poverty”, saying he would instead try to reduce the benefits bill by changing the education system.
Burnham remains the only candidate in the Labour leadership race, meaning he could become PM as early as 20 July. His allies hope his presence in Manchester will symbolise a real shift of power away from Westminster – a goal that has eluded previous prime ministers, including Harold Wilson, whose attempt to weaken the Treasury with a Department of Economic Affairs ultimately failed. Whether Burnham can succeed where Wilson failed – and whether he will follow Wilson’s example of living away from No 10 – remains to be seen.