The government’s decision to assign responsibility for economic growth to the newly established No 10 North office in Manchester is not a diminution of Chancellor John Healey’s role or the Treasury’s influence, according to Housing Secretary Angela Rayner.

No 10 North, a satellite office of Downing Street, will take over duties related to fostering economic growth, while the Treasury will concentrate on managing public finances. This reorganisation reflects a broader push to decentralise power and promote regional economic development.

Prime Minister Rishi Sunak has described the shift as part of a “huge transfer of power” and indicated that Healey fully supports the change. Addressing concerns about the Chancellor’s position, Rayner told Sky News that Healey is working closely with the Prime Minister and other cabinet members to pursue a shared agenda focused on devolution and community empowerment.

“The Chancellor is working really hard with the Prime Minister, with myself and other Cabinet colleagues,” Rayner said. She added that the government is committed to empowering local partners to drive their own economic growth, making devolution central to its policy.

Andy Burnham, the Labour mayor of Greater Manchester and an architect of the No 10 North initiative, argued that uniting economic growth responsibilities with fiscal oversight at the Treasury had limited the department's effectiveness in both areas. Speaking to The Times, Burnham suggested that the UK’s current structure is not adequately designed to promote economic growth, given the Treasury’s dual focus on public finance control and economic strategy.

Burnham also indicated that expanding public ownership over essential services such as buses, trains, and water could be part of a practical approach to empowering local economies. “If you don’t have the ability to shape those fundamental enabling services, you don’t control the destiny of the place you’re leading,” he said. “You don’t have a handle on the levers of growth.”

The creation of No 10 North represents a significant shift in governance, reflecting the government’s commitment to devolve economic decision-making beyond London and central Whitehall departments. While the initiative has been welcomed by some as a step toward local empowerment, others have questioned whether it will lead to meaningful change or merely rearrange responsibilities without addressing underlying challenges.