Andy Burnham’s proposed ‘No 10 North’ would lead to a “very powerful reorganisation of government”, deputy Labour leader Lucy Powell has said. Her words come as ministers push ahead with one of the biggest overhauls of English local government in decades before Burnham is expected to enter Downing Street later
Saskia Koopman
Sunday 05 July 2026 10:41 am | Updated: Sunday 05 July 2026 10:44 am
Andy Burnham’s proposed ‘No 10 North’ would lead to a “very powerful reorganisation of government”, deputy Labour leader Lucy Powell has said.
Her words come as ministers push ahead with one of the biggest overhauls of English local government in decades before Burnham is expected to enter Downing Street later this month, with Labour arguing the reforms will help deliver faster regional growth by shifting power away from Whitehall.
Burnham has made devolution the centrepiece of his leadership campaign, promising to relocate parts of government to Manchester, hand regional leaders greater powers over planning, transport, housing and economic development, and create a “No 10 North” to drive policy outside London.
Powell sought to reassure businesses and local leaders that the reforms would not impose a single model across England, arguing regions should be allowed to build economic strategies around their own industrial strengths.
“We have a particular economy here that began in computing and digital,” the Manchester Central MP told Sky News. “We’ve got a real knowledge economy here, advanced manufacturing as part of that too.”
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“Other places have got an economy that maybe is built around nuclear power or shipbuilding or renewable energy or an economy built around a university.”
“It’s not a one-size-fits-all… This is about taking power from Whitehall to distribute it around the country, and this will be a very powerful reorganisation of government in order to deliver that lifeblood back into every community and every postcode across the country.”
Meanwhile, ministers are preparing to approve sweeping council reorganisations across up to 16 areas, including Oxford, Cambridge, Leicester, Nottingham, Exeter, Stoke and Brighton, before Starmer leaves office, the FT has reported.
Local government secretary Steve Reed told the newspaper the reforms were “definitely” going ahead, arguing council reorganisation and devolution “go hand in hand” if Burnham is to fulfil his pledge to “rewire” the British state.
Read more Starmer to give Burnham access to government
The plans would replace much of England’s existing two-tier council structure with larger unitary authorities designed to work alongside expanded metro mayor powers.
Ministers have claimed that this new model will simplify planning, speed up infrastructure projects and give regional leaders more control over attracting investment.
Early test for Burnham
The reforms will quickly become one of the first political tests of a Burnham premiership. According to the FT, more than 18 million voters could head to the polls in newly expanded council elections next May, giving Labour an early verdict on whether its devolution agenda is resonating with voters.
Jonathan Carr-West, chief executive of the Local Government Information Unit, told the said the elections would be a potential “proof of concept” for Burnham’s programme, although he warned councils embroiled in contentious reorganisations may lack the “political or logistical headspace” to make devolution work effectively.
The changes also come as Burnham attempts to convince both markets and business that constitutional reform can support growth rather than distract from it.
The incoming prime minister has repeatedly pledged to stick to Labour’s fiscal rules while arguing Britain’s highly centralised model has held back productivity and investment outside London.
His broader economic agenda includes devolving more planning and transport powers and reforming procurement to favour British industry and giving local leaders greater control over skills policy.
London currently generates around a third of corporation tax receipts, while many regions continue to lag behind on productivity and private investment.
Read more Burnham must walk a tightrope on his ascent to Downing Street
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