“Power Shift”: What’s at Stake in the North-South Economic Rebalancing?

Britain is undertaking its most significant economic rebalancing in decades, with one question hanging over the country: can devolution bring growth and prosperity to the regions? The prime minister’s ambitious plan, dubbed No 10 North, promises to put power back in the hands of local leaders. However, past efforts have faltered, leaving doubts about its success.

The national economic council (NEC), revived by Andy Burnham, will bring together regional mayors, senior ministers, and business leaders to drive collective action on growth. Regional mayors like Burnham must prove that devolution is more than just a tokenistic gesture, given the Treasury’s purse strings remain firmly in London.

The creation of No 10 North, operating from Manchester’s Heron House, marks a significant shift in power dynamics. For the first time, local leaders will sit alongside senior ministers at the table, making decisions on economic policy. This is not just about driving growth; it’s about rebalancing the economy to ensure every region has an equal shot at prosperity.

Critics warn of tokenism, citing tension between No 10 North and Burnham’s earlier creation: the powerful prime minister’s department, which will oversee decision-making from London. This raises questions about whether devolution is truly a priority or just a convenient PR exercise.

The NEC has a troubled history. Under Gordon Brown, it met twice a week during the 2008 financial crisis but its impact was limited by Whitehall’s dominance. The success of this new incarnation will depend on how effectively regional mayors can wield their newfound power to drive growth and regeneration.

The North-South divide is not just an economic issue; it’s also a social one. For decades, the regions have been hindered by lack of investment, infrastructure, and opportunities. No 10 North promises to change this by putting local leaders in charge, removing barriers to growth – from council house building to public transport infrastructure.

Success will not be easy, however. The Treasury’s control over finances remains a significant hurdle. Local leaders must negotiate with London on budget allocations and policy decisions, and then there’s the issue of accountability: ensuring that their decisions are transparent and accountable to local communities.

As Burnham becomes the first British leader to run government operations from Manchester, he faces a daunting challenge: proving that No 10 North is more than just a symbolic gesture; it’s a genuine attempt to rebalance power and drive growth across every postcode of the UK. The fate of Britain’s regions hangs in the balance – will devolution truly bring prosperity to the North, or remain a distant promise? Only time will tell.