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Mon, 29 Jun 2026

Mon, 29 Jun 2026 Will Andy Burnham's devolution plan raise economic growth?

BBC Verify has looked at what impact further devolution could be expected to have on the UK.
Andy Burnham, a contender for the UK Prime Minister role, has unveiled plans to decentralize power from Whitehall and give it to local regions across the country. As part of his "radical rewiring" plan, he aims to close the economic gap between London and other cities by investing in infrastructure and public services. Burnham's vision is inspired by Germany's success in developing its second-tier cities, which have similar productivity levels to their capital city, Berlin. He believes that a more balanced economy would not only boost regional growth but also improve the overall performance of the national UK economy. To achieve this, Burnham plans to establish a network of "Investment Zones" across the country, with dedicated funding and decision-making powers for local leaders. This approach is different from Boris Johnson's "levelling up" initiative, which was criticized for lacking sufficient state resources and investment. Burnham has pledged to stick to existing fiscal rules and Labour's manifesto, but he also wants to learn from Germany's model of investing heavily in regional development. He aims to create equivalent living conditions across Britain by borrowing from Germany's "basic law", which ensures that all regions have access to similar public services and infrastructure. Analysts point out that the UK's current economic disparities are largely due to its decentralized system, which has led to a concentration of economic activity in London while other cities struggle. Burnham's plan aims to address this issue by giving more autonomy to local leaders and investing in regional development. The impact of Brexit is also mentioned as a factor contributing to the UK's economic woes, with analysts warning that another heatwave could exacerbate existing problems. Overall, Burnham's vision for a more decentralized economy is seen as a necessary step towards rebalancing the UK's economy and creating a more equal society.