Andy Burnburn launches No 10 North and a re-industrialisation push

Prime Minister Andy Burnham has created a new prime-ministerial department, No 10 North, to shift decision-making power from London to regional hubs. The unit will combine local-growth teams from the Treasury and the Ministry of Housing, Communities and Local Government and will be overseen by Louise Haigh. In its first week the government announced a VAT cut on electricity bills, reduced business rates for pubs, social clubs and live-music venues, and pledged to raise defence spending to the NATO target of 3.5 % of GDP by 2035.

The Guardian

Four decades of centralised power and deindustrialisation have left many regions in decline. Earlier “levelling-up” reforms were criticised for keeping decisions in London.

The Guardian

• July 21 (scheduled) – Rolls-Royce seeks a UK subsidy decision for a new narrow-body aircraft engine.

Reuters

• July 22 (occurred) – Burnham visits a Bath bus station and announces the winter VAT cut on electricity bills.

Byline Supplement

• July 23 (scheduled) – Burnham will meet Scottish First Minister John Swinney and Welsh First Minister Rhun ap Iorwerth in Glasgow, pledging “good growth in every postcode.”

Prime Minister pledges growth in every postcode across whole of UK as he visits Scotland

• Rolls-Royce CEO Tufan Erginbilgic estimates the engine could create 40,000 British jobs.

Reuters

• The defence target of 3.5 % of GDP by 2035 represents a real-terms increase of more than £25 bn over the next decade.

The Guardian

• The government unveiled a £600 million aerospace package at Farnborough, including >£500 million for R&D and a £100 million supply-chain fund.

Business Secretary: “I'm backing investment and innovation to power good growth in every corner of the UK”

• “This ensures that local economic growth policy and regional empowerment are no longer isolated from one another, establishing No 10 North as the dominant driver of the UK’s economy.” — government.

Machinery of Government changes: Fact Sheet

• Defence secretary Wes Streeting said increased defence spending would make “an enormous contribution” to growth.

The Guardian

• Professor David Bailey, Birmingham Business School, warned that without re-joining the EU single market the UK “will not grow.”

Byline Supplement

• Adam Bienkov, Byline Times, highlighted fiscal constraints and suggested an early election could create “wriggle room” for the agenda.

Byline Supplement

• Defence spending targets differ: Burnham’s 3.5 % by 2035 versus a previous 3 % target for 2025. The trajectory remains unsettled.

The Guardian

• Rolls-Royce has not disclosed the size of the subsidy it seeks; the CEO declined to comment on the amount.

Reuters

• “We would like to do it in the UK because of our origin. Do we have other options? Yes,” — CEO Tufan Erginbilgic

Reuters

• “What an opportunity we have under this prime minister and this chancellor,” — Wes Streeting

The Guardian

• The UK must decide on the Rolls-Royce subsidy by July 21 to keep the engine project on schedule.

Reuters

• Burnham has indicated a 10-year plan will be published later this year, outlining steps for reindustrialisation, housing and public-service reform.

Byline Supplement