Key facts
- UK Prime Minister Andy Burnham has revived the National Economic Council (NEC), modeled after Gordon Brown's 2008 initiative.
- Regional mayors will be given a leading role in economic policy decisions.
- A new "No 10 North" office in Manchester will serve as an interim headquarters for the prime minister's northern operations.
- The government aims to rebalance power and drive economic growth from outside London.
- Louise Haigh has been appointed to lead the Office for the Prime Minister and the Cabinet, overseeing No 10 North.
Prime Minister Andy Burnham has revived the National Economic Council (NEC), a body originally established by Gordon Brown during the 2008 financial crisis, to spearhead economic growth with a renewed sense of urgency. Burnham announced that regional mayors will be given a leading role in UK economic policy decisions, signaling a significant rebalancing of power away from London. The new initiative includes the establishment of "No 10 North" in Manchester, intended to serve as a central hub for devolution and economic strategy, with Burnham himself planning to work from the office weekly.
Burnham stated that the era of fighting devolution is over and that sharing power is beneficial. The NEC's inaugural meeting will bring together senior ministers and regional mayors to place devolution at the heart of the government's mission. The "No 10 North" office, located at Heron House in Manchester, aims to consolidate levers of local economic growth and devolution under a single plan, rather than disparate departmental efforts. This move is intended to ensure that decisions about the country's economic future are not exclusively made in Westminster.
To support these plans, Burnham has created a new prime minister's department, incorporating elements of the Cabinet Office, Treasury, and housing ministry, to drive the UK's economy. This new office will be led by his ally Louise Haigh and will oversee both the Manchester-based No 10 North and the London operation, as well as parts of the Cabinet Office. Education secretary Lucy Powell and communities secretary Angela Rayner, both with Greater Manchester seats, are also expected to spend time working from No 10 North, with civil servants anticipated to relocate there. The FDA union has welcomed the structural changes but cautioned about the implications of relocation for staff. At least seven employees from the Greater Manchester Combined Authority, including Burnham's deputy chief of staff Caroline Simpson and aide Kevin Lee, are moving into the temporary Heron House office while a permanent site is developed. The NEC's attendees will be flexible, adapting to specific issues and including business leaders and trade unions.
Under Gordon Brown, the NEC met frequently and was instrumental in coordinating responses to the financial crisis and volatile markets, though concerns existed about its potential impact on the Treasury. The revived committee has been likened to the Cobra emergency committee. Burnham envisions the Manchester department as crucial for driving reindustrialization and growth across the UK, removing regeneration barriers and ensuring Whitehall supports local development rather than hindering it, with the ultimate goal of achieving equivalent living standards across all UK regions.