Full Breakdown
Burnham’s No 10 North: Shifting Economic Growth Policy from the Treasury
8/22/2026, 2:43:35 AM
The Transfer of Growth Policy
Prime Minister Andy Burnham announced that responsibility for UK economic-growth policy will move from HM Treasury to a newly created “No 10 North” office in Manchester. Burnham called it a “huge transfer of power” and said the Treasury’s combined role of managing public finances and driving growth “sometimes clouds the growth mission.”
Rationale and Historical Context
Burnham framed the reform as a way to break the Treasury’s “dual job” that hampers long-term planning. He likened the move to Harold Wilson’s 1960s Department for Economic Affairs, which sought to separate growth planning from fiscal control. The prime minister argues that devolving growth decisions to a regional hub will unlock “blockages” across Whitehall and allow more targeted support for local economies.
Key Players
- Andy Burnham – Prime Minister – initiator of the No 10 North restructuring.
- John Healey – Chancellor of the Exchequer – backs the transfer, describing it as a “huge transfer of power.”
- Angela Rayner – Housing Secretary – says the change is not a demotion for the Treasury and that the chancellor will work with partners to empower local economies.
- Louise Haigh – Cabinet Office minister – oversees the new unit and its focus on devolution.
- Beth Russell – Second Permanent Secretary, Treasury – coordinates staff secondments to No 10 North.
Staffing and Resources
Government data show the Treasury employed roughly 2,000 full-time staff across London, Darlington and Norwich in late 2024. Its Enterprise and Growth Unit, created in 1997, had about 220 staff in 2021. Only a “small number” of Treasury personnel have been seconded to No 10 North so far, and the new office is expected to operate without additional taxpayer cost.
Official Statements & Responses
Healey affirmed his full support, describing the plan as a “huge transfer of power” that will not diminish the Treasury’s fiscal role. Civil-service officials noted that No 10 North will coordinate with housing, local-government and other departments, though resources remain modest.
Criticism & Opposition
Former Conservative chief secretary to the Treasury David Gauke warned that the Treasury’s control over tax and spending will remain “the most important department,” suggesting the reform could simply shift fiscal power. Hannah Peaker of the New Economics Foundation warned that the Treasury’s historic response to challenges from No 10 North has been to offer “lip service” without accompanying spending. Jonathan Portes, a former senior government economist, questioned how policy clashes will be resolved when No 10 North proposes initiatives that the Treasury rejects.
What’s Next
- October 28 – Chancellor John Healey must deliver his first budget, balancing the books while funding the Labour administration’s spending agenda.
- September 1 – Justice Secretary Alex Norris is set to present a “much better solution” on a separate criminal-justice issue, illustrating the broader reform agenda underway.
