UK PM Contender Announces Devolution Plan to Empower Regions

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Andy Burnham, the former Mayor of Greater Manchester and a Labour MP, is widely considered the frontrunner to succeed Keir Starmer as Prime Minister. According to reports from The Guardian on June 28, Burnham plans to announce a comprehensive devolution scheme designed to shift some decision-making powers to various regions and communities across the UK, aiming for “good growth” in every area.

Burnham is expected to deliver a speech on the 29th local time, outlining his ten-year agenda should he assume the role of Prime Minister. He argues that the high concentration of political power in London is a primary cause of the severe imbalance in regional development across the UK. His plan involves announcing the “largest devolution in modern British history,” claiming it will help the UK “return to its rightful place.”

Advocating for the decentralization of decision-making to local regions and communities, Burnham proposes granting local governments partial tax powers. This approach seeks to replace the current “top-down” national model, thereby fostering local economic growth.

UK Labour MP Andy Burnham IC Photo

Reports suggest that Burnham will emphasize in his speech that the UK needs more than just a change in leadership; the way the country is governed “must also change.” Additionally, Burnham is considering relocating some functions of the Prime Minister’s office to Manchester to further promote devolution and coordinate economic revitalization plans nationwide.

Burnham claims that if he becomes Prime Minister, he will draw on the so-called “Greater Manchester Model,” which promotes collaboration between government, businesses, universities, and communities. However, he has not yet disclosed the specific details of how to implement this vision.

Furthermore, Burnham is expected to echo Starmer’s ten-year government plan, proposing to improve the living standards of the British people by revitalizing industry, building housing, improving infrastructure, and reforming utilities. He has promised to reform the UK’s public procurement system to ensure “maximum support” for local employment and industries.

On June 22 local time, Starmer announced his resignation as Prime Minister. Burnham, who won a House of Commons seat through a by-election, is seen as the most popular successor. He has consistently advocated for the nationalization of key public services and has criticized the widespread problems associated with neoliberal economic policies.

However, Reuters analysis suggests that, like Starmer, Burnham may find his room for action quite limited even if he succeeds: on one hand, he would be constrained by bond market investors who oppose any additional borrowing; on the other hand, he would face angry voters who believe the country’s operations are flawed.

The UK already has the highest borrowing costs among the Group of Seven (G7) nations. Economists at Citibank believe that if Burnham becomes Prime Minister, he “will inherit a precarious fiscal situation and will have almost no policy tools in hand to achieve meaningful change”.

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