The Urgency of Devolving Power and Sharing Prosperity
The imperative to devolve power and distribute prosperity remains as critical as ever. Regardless of the terminology or the occupant of Number 10 Downing Street, the foremost priority now is tangible delivery.
Andy Burnham has articulated his vision for “good growth in every postcode.” While this may appear as levelling up 2.0, this is promising news for the nation. Unlike his Labour and Conservative predecessors, Burnham may possess a more profound understanding of how to implement such a vision effectively.
Boris Johnson appropriated the levelling up rhetoric from the Department for Education (DfE), but subsequently diminished what should have been a defining mission for his administration to little more than a towns fund. Keir Starmer correctly identified “breaking down barriers to opportunity” as a government objective, yet his administration increased employers’ national insurance contributions—effectively taxing opportunity—which was always likely to disproportionately affect early-career and younger workers.
Burnham’s recent victory in the Makerfield by-election suggests a greater appreciation of the scale and complexity of the changes required to ensure all regions of the UK benefit from government policies. Nevertheless, political momentum must be established swiftly, or public patience with his premiership may wane even faster than it did with Keir Starmer.
Three Essential Components for Success
Success depends on three critical elements.
First, the concepts of “place” and “partnership” are rightly central to Burnham’s approach. The traditional Whitehall top-down, uniform approach is inadequate for addressing the complex realities on the ground. Change is driven by local actors collaborating rather than working in isolation—a challenge for government departments accustomed to operating within a competitive fiscal environment. The DfE’s “Opportunity Areas” initiative, introduced during my tenure as education secretary, empowered local education leaders to tailor priorities to their unique contexts rather than merely implementing DfE directives. These initiatives involved partnerships with local NHS bodies, local government, businesses, and community groups, supported directly by DfE officials. Together, they developed collectively owned plans to improve educational outcomes.
Burnham’s No 10 North proposal could serve as a pivotal mechanism to disrupt the Whitehall system positively. Combined with his radical devolution agenda, it could represent a significant transfer of power from Whitehall to communities nationwide, enabling them to develop bespoke solutions. This approach also signals to other major regions that they are integral to his vision and actions.
Empowering Businesses as Engines of Opportunity
Second, Burnham must unlock the potential of the country’s genuine “opportunity engines”—businesses. Through my work on social mobility with the Social Mobility Commission, I have observed how businesses thrive through the partnerships Burnham passionately advocates.
Consider Leonardo, the helicopter manufacturer based in Yeovil. It is a cornerstone of the south-west regional economy and has generated thousands of highly skilled jobs. Collaborating closely with the local education system, Leonardo has ensured that local residents can access career opportunities nearby. This mutually beneficial relationship between community and company has not only contributed to Leonardo’s success but also preserved the UK’s helicopter manufacturing capacity.
Numerous other businesses similarly drive social mobility in communities that stand to benefit the most. Burnham should identify and engage with these enterprises. Additionally, he should explore methods to measure success and impact, distinguishing genuine contributors from mere talkers. It is time to differentiate anchor businesses that act as authentic engines of social mobility from those that do not.
Reforming the Treasury to Support Good Growth
The final challenge may be the most difficult: reforming the Treasury while maintaining the City’s confidence. “Good growth in every postcode” is as much a public finance strategy as it is an economic and social one. Lives on track contribute positively to public finances, whereas lives off track impose costs on society. The Treasury must evolve to properly value investments in keeping lives on track, rather than focusing solely on minimizing the costs associated with lives off track. A prevention-first approach to social investment is essential. The Treasury must develop effective metrics to assess good growth, not merely growth in general. Without such measures, a Burnham government cannot accurately evaluate its success.
It is notable how little innovation has emerged from the Treasury in tax policy, whether concerning business rates—which have been in limbo for years—corporate taxes, VAT, or the potential for devolution to enable regions to retain financial savings derived from maintaining their communities on track. While the Treasury has consistently urged other departments to devolve policy and budgets, it has steadfastly resisted doing so itself. This stance must change.
Burnham faces numerous challenges as prime minister, but his vision offers a significant opportunity to reverse Britain’s fortunes.
“Good growth in every postcode”? Bring it on; now it’s time for delivery.
Justine Greening was the Conservative MP for Putney from 2005 to 2019.
