Lord O’Neill Urges PM Burnham to Focus Growth Regionally

By the Editorial Team · Sunday, August 30, 2026

Lord O’Neill advised Prime Minister Andy Burnham to focus economic development on major urban centers like London and the Northern Powerhouse instead of pursuing growth evenly across all regions. He warned that prioritizing these key hubs is crucial for national GDP growth, though it may create political challenges by leaving some areas, such as Cornwall, feeling neglected.

Lord O’Neill has urged Prime Minister Andy Burnham to prioritize regional economic growth by concentrating efforts on key urban centers rather than pursuing growth uniformly across all areas. Speaking on the challenges of delivering Burnham’s pledge to achieve “growth in every postcode,” O’Neill emphasized the importance of focusing on London and major growth corridors such as the West Midlands and the Northern Powerhouse, which includes Manchester, Liverpool, Sheffield, and Leeds.

O’Neill highlighted London’s outsized economic role, describing it as “still as big as the next eight most important urban places put together.” He warned that if the capital’s economic momentum faltered, national GDP growth figures would struggle to improve. Regarding the Northern Powerhouse, he suggested it could be a “national game-changer” for the UK economy, though he acknowledged that this approach might cause tension in other regions like Cornwall, which might feel overlooked.

“That's going to be tricky for them politically, not least because Andy said we want to have growth in every postcode. He’s got to think about the reality and hard choices,” O’Neill added, underscoring the difficult balancing act the government faces in delivering broad-based prosperity.

Lord O’Neill also addressed his decision not to join the government in a formal capacity. Despite opportunities to serve either as a minister or adviser, he declined, citing his status as a crossbench peer and reluctance to accept the Labour whip. Additionally, he was unwilling to place his business interests into a blind trust, which would require relinquishing direct management to avoid conflicts of interest.

The remarks come amid ongoing discussions about how best to stimulate sustainable economic growth across the United Kingdom, with government officials grappling with competing demands from various regions and sectors. O’Neill’s comments highlight the tension between political ambitions for inclusive growth and the practical economic realities centered around established hubs of activity.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.