Efforts to devolve economic power away from central government to regional authorities in England have gained renewed attention with Andy Burnham promoting the concept as a core aspect of his vision for balanced growth across the country. Burnham, former mayor of Greater Manchester and a leading figure in the Labour Party, advocates shifting decision-making authority from Westminster to local combined authorities to unlock regional economic potential. This approach echoes longstanding calls for devolution made by figures such as Lord Heseltine, who over a decade ago urged greater funding and autonomy for local enterprise partnerships and city regions.
Despite multiple initiatives since the 1980s, including the establishment of devolved parliaments in Scotland and Wales and the creation of city-region mayors, England remains one of the most financially centralized developed countries, according to OECD data. Past efforts such as regional development agencies (RDAs) and local enterprise partnerships (LEPs) faced significant challenges, including overlapping jurisdictions, governance issues, and political friction between central and local government. The abolition of RDAs and the modest resources allocated to LEPs have been criticized for undermining continuity and effectiveness in regional economic planning.
Experts emphasize that Burnham’s goal to empower combined authorities must overcome persistent obstacles of fragmented power and inconsistent national policies. Many combined authorities hold varying degrees of devolved powers, leading to what has been described as a patchy and uneven landscape of regional autonomy. While some regions, like Greater Manchester—where Burnham previously served as mayor—have developed robust economic and social strategies, large parts of the country, including many rural counties, remain outside the devolution framework.
Key analysts highlight the importance of granting these local bodies more control over infrastructure, taxation, and industrial strategy to enable genuine economic growth that responds to regional needs. The challenge lies in securing both political consensus and sustainable funding amid the UK’s fiscal constraints. Heseltine suggests redirecting capital investment from Whitehall departments to regions, leveraging partnerships with local universities and businesses to attract private and international investment.
There is cautious optimism around proposals such as relocating part of the Prime Minister’s office to Manchester, which could enhance coordination of devolution efforts beyond London. However, concerns remain about entrenched Whitehall interests and Treasury resistance, which have historically limited the scope of decentralization.
Business leaders involved in regional development urge stability and continuity, warning against frequent restructuring that has characterized previous devolution attempts. The call is for Burnham’s government to support existing structures and provide them with the powers and resources needed to deliver sustained economic progress, rather than initiating further top-down reforms.
As Burnham positions devolution at the heart of his economic agenda, success will depend on overcoming institutional inertia, expanding democratic engagement beyond major urban centers, and creating an environment where regional authorities can effectively shape and implement local industrial strategies.