Andy Burnham shakes up Whitehall with new government department

Andy Burnham, the mayor of Greater Manchester, has introduced sweeping structural changes to the UK's central government, creating a new prime minister’s department aimed at decentralizing power and focusing on regional economic growth. The Office of the Prime Minister and Cabinet, led by Burnham’s ally Louise Haigh, will oversee operations in both London and the newly established No 10 North in Manchester. This initiative marks a significant shift in how governance is structured, aiming to bring decision-making closer to the people. Burnham’s restructuring involves transferring parts of the Cabinet Office, Treasury, and housing ministry to the new department. Teams focused on local growth and devolution from the Treasury and Ministry of Housing, Communities and Local Government will be relocated to the No 10 North unit, which will be ultimately overseen by Haigh. However, Angela Rayner, the housing secretary, retains control over devolution policy, ensuring her role is not diminished but rather reinforced from the center of government. The government stated that these changes aim to integrate local economic growth policy and regional empowerment, making No 10 North the dominant driver of the UK’s economy. Other components of the Cabinet Office will be moved into a new agency named OneGov, managed by cabinet secretary Antonia Romeo, which will handle government HR functions such as pensions, recruitment, and security vetting. Additional reorganizations see the equality office moving to the housing ministry; digital ID to the Department for Culture, Media and Sport; the public sector fraud authority to the Department for Work and Pensions; and the investment security unit to the Department for Business, Innovation, Science and Trade. To facilitate the transition, the government plans to offer relocation packages to civil servants willing to move north to the upcoming No 10 operation in Manchester. Sources indicated that generous incentives would be necessary to convince employees currently working on local growth initiatives in London to relocate to Manchester swiftly. A No 10 spokesperson emphasized the importance of shifting power and decision-making away from London to areas closer to the people. Staff members, including senior official Caroline Simpson, are already stationed at the new location. Burnham intends to work from Manchester at least one day per week, signaling a commitment to devolution. The changes were formally announced through a written ministerial statement in the House of Lords, following the conclusion of the summer recess for MPs. Angela Smith, the leader of the Lords, described the overhaul as a fundamental rewiring of the state, altering the geographical landscape of government to empower local leaders and serve as a catalyst for economic growth nationwide. She highlighted the significance of placing places at the core of government strategy, establishing No 10 North as the hub for devolution and growth in all regions. Other notable changes include the dissolution of the Department for Science, Technology and Innovation, with its responsibilities reverting to the business and culture departments, as they existed prior to the restructuring under Rishi Sunak. Responsibility for artificial intelligence, however, remains unspecified in current reports. The Institute for Government praised the move, with director Hannah White expressing optimism about the reforms. She noted that an incoming prime minister had finally acknowledged the flaws within the central government structure and implemented the necessary changes advocated by her organization. The shift reflects a broader effort to address perceived inefficiencies and to align governance more closely with the needs and aspirations of local populations.