Former Chancellor George Osborne has defended the concept of 'Manchesterism' as a driver of regional growth, crediting Mayor Andy Burnham and past leaders for the city's economic success. However, Osborne stated Burnham is 'only part of the story' and cautioned against overruling Treasury policy.
George Osborne's endorsement of 'Manchesterism' and his call for greater fiscal devolution from central government could influence future UK economic policy and regional development strategies. His comments also highlight ongoing debates about the drivers of regional growth and the translation of economic expansion into improved living standards.
Former Chancellor George Osborne has lent his support to the concept of 'Manchesterism,' acknowledging its role in the city's economic growth while suggesting that Mayor Andy Burnham is only one piece of the larger success story. Speaking to the House of Lords Economic Affairs Committee, Osborne defended his previous 'Northern Powerhouse' initiative, which began devolving fiscal powers to Manchester.
Osborne praised former Manchester City Council leaders Richard Leese and Howard Bernstein for their bipartisan approach to devolution, which he said facilitated transport network expansion and housing development. He noted that Manchester's growth over the past seven years has outpaced London, the West Midlands, and the UK average.
The former Tory frontbencher described 'Manchesterism,' as championed by Burnham, as 'business-friendly socialism' focused on devolving powers from London. He characterized it as pragmatic, prioritizing growth, attracting investment, being bipartisan, and concentrating on delivery. Osborne suggested this model is transferable to other cities but requires careful study.
His appearance coincided with Chancellor Rachel Reeves's plans for further fiscal devolution to local authorities. Osborne argued for bolder action, suggesting that central government officials in Whitehall have less confidence in driving regional growth compared to local leaders. He recommended allowing local governments to retain additional tax receipts.
Analysis by Oxford Economics identified Manchester as a leading performer economically since the 2008 financial crash, attributing its success to a favorable policy environment and long-term industrial shifts toward a services economy. However, the report also highlighted that this growth has not significantly improved living standards due to high housing costs and weak income growth.
Osborne also issued a cautionary note to Burnham, advising against overruling the Treasury on policy matters should he ever aspire to become Prime Minister, citing the Treasury's role in implementation and monitoring potential bailouts.