Key Takeaways
- Ashington, a former coal‑mining town in North‑East England, exemplifies the “left‑behind” communities that have suffered since deindustrialisation and the loss of its aluminium smelter in 2012.
- Prime Minister Andy Burnham’s “growth in every postcode” agenda centres on ending 40 years of neoliberal trickle‑down economics and rebuilding the economy “from the bottom up” through a devolution revolution he calls Manchesterism.
- Fiscal devolution will shift control of local business rates, a share of income tax, and a new tourist tax to regions, letting them retain the gains from growth while poorer areas receive a distribution mechanism to address historic under‑investment.
- Evidence from the OECD and a joint Harvard‑King’s College study suggests that bringing Britain’s second‑tier cities up to Western European peers could add £70 billion (≈2 % of GDP) to national output, with the Centre for Cities estimating a £47 billion boost if the eight largest underperforming urban areas reached average productivity.
- While Scotland and Wales show that devolution alone is not a panacea—growth has lagged despite higher taxes and spending—successful English models such as Greater Manchester and London demonstrate that devolving transport, housing, skills, investment, housing, policing and education powers can yield tangible benefits when paired with clear fiscal freedoms.
- The government’s announcements include raising the threshold for local transport projects that bypass central approval from £200 million to £500 million, introducing deputy mayors to manage expanded responsibilities, and legislating “devolution by default” via the English Devolution and Community Empowerment Act.
- Political motivation is tied to levelling up former Labour heartlands that have drifted to right‑wing Reform UK; improving living standards in these areas could secure electoral gains for the Labour Party.
- Stakeholders such as former Conservative West Midlands mayor Andy Street (Prosper UK) and Chancellor John Healey advocate further fiscal powers—including retaining portions of stamp duty, airport duty, vehicle excise duty, VAT and corporation tax—to deepen regional autonomy and drive sustainable growth.
The Decline of Ashington: A Symbol of Neglect
Ashington, once a bustling coal‑mining hub in the North East of England, fell into decline after the Thatcher‑era deindustrialisation swept through the region. Its last coal pit shut in 1986, and the town’s largest employer, an aluminium smelter, closed its doors in 2012. Situated merely 20 miles from the thriving city of Newcastle, Ashington has lacked a rail link since 1964, isolating it from broader economic currents. Consequently, its neighbourhoods now rank among the poorest 5 % of England, embodying the “left‑behind” communities that have felt the brunt of economic restructuring and austerity measures.
Burnham’s Vision: Growth in Every Postcode
Enter Andy Burnham, Britain’s new Prime Minister, who has made the revival of towns like Ashington the cornerstone of his policy platform. He pledges to deliver “growth in every postcode” by rejecting the prevailing neoliberal paradigm that, in his view, has prioritised trickle‑down economics for four decades. Instead, Burnham advocates rebuilding the economy “from the bottom up” through a sweeping devolution revolution. He brands this approach Manchesterism, drawing on his nine‑year tenure as mayor of Manchester, where he witnessed first‑hand how empowering local leaders can stimulate inclusive growth.
From Westminster: The Mechanics
Burnham’s plan seeks to correct amount of tax and a local authority to local only current fiscal devolution is the share of Wales, and Northern Ireland Wales a system Wales Northern Ireland Ireland. Under under Burnham’s proposals, local business the grants will be replaced by a share of local business rates and income tax, and a brand‑new local tourist tax. The logic is straightforward: when a region expands its tax base, it reaps the financial rewards, creating a direct incentive for pro‑growth policies. To prevent poorer areas from being left behind, a distribution mechanism will channel funds to those that have historically suffered from investment shortfalls.
ResponsibilitiesAccompanying Fiscal Freedoms
Greater financial autonomy will be paired with expanded responsibilities. Regions will gain authority over education, employment, health, transport, policing, and housing, necessitating the creation of deputy mayors to manage the widened portfolio. The threshold for local transport projects that can proceed without central government sign‑off will rise from £200 million to £500 million, allowing metros to fast‑track infrastructure that directly addresses local bottlenecks. While many operational details remain to be fleshed out, the overall architecture is designed to shift decision‑making closer to the people who experience the outcomes daily.
Pre‑Existing Groundwork: Reeves, Starmer, and the “Devolution by Default” Framework
The devolution agenda did not begin with Burnham’s premiership. Former Chancellor Rachel Reeves had already set the process in motion, announcing a locally run “visitor levy” and plans to share revenue from income tax and business rates—proposals that were slated for the autumn budget she will no longer deliver. In April, legislation enshrining “devolution by default” came into force through the English Devolution and Community Empowerment Act, a product of former Prime Minister Keir Starmer’s tenure. This law flips the traditional burden of proof: instead of ministers having to justify each transfer of power, the presumption is that powers should reside locally unless a compelling case for central control is made.
Voices from the Field: Endorsements and Calls for Further Reforms
Andy Street, the former Conservative West Midlands mayor who collaborated with Burnham during his Manchester years, now leads the Prosper UK movement and urges the Prime Minister to go further. Prosper UK advocates that local authorities retain a share of stamp duty, airport passenger duty, vehicle excise duty, and even value‑added tax. The Centre for Cities adds corporation tax receipts to the list of fiscal levers that could be devolved. Chancellor John Healey echoes this sentiment, asserting that those who live in a region best understand its skill needs, transport requirements, and investment opportunities. He stresses that a government serious about regional development must hand over “the decision powers, the funding streams, the policy instruments.”
Evidence of Impact: What Studies Show About Devolution’s Potential
Burnham’s confidence in devolution is bolstered by research from Harvard and the Organisation for Economic Cooperation and Development (OECD). As the most centralised of the 38 OECD economies, the UK currently controls only about 5 % of taxes and 20 % of spending decisions locally. The OECD has noted that Britain’s second‑tier cities, after London, consistently underperform relative to international peers of comparable size and density. A joint Harvard‑King’s College study, co‑authored by former Labour Treasury Minister Ed Balls, estimates that bringing these cities up to Western European standards could add £70 billion (roughly 2 % of GDP) to national output. The Centre for Cities calculates a £47 billion gain if the eight largest underperforming urban areas reached average productivity per worker.
The Limits of Devolution: Lessons from Scotland and Wales
Nevertheless, devolution is not a guaranteed cure‑all. Scotland, the UK’s most devolved nation, has experienced slower growth than England since the 2008 financial crisis, despite raising its top income‑tax rate to 48 % and increasing spending on health and education. Wales tells a similar story: higher taxation and greater public expenditure have not translated into superior economic outcomes. These cases underscore that merely shifting fiscal powers does not automatically improve performance; effective governance, institutional capacity, and coherent policy design are essential complements to devolution.
Successful English Models: Manchester and London as Blueprints
Within England, there are encouraging exemplars. Greater Manchester, under Burnham’s leadership, has demonstrated how devolving transport, housing, skills, and investment can catalyse regeneration and attract private capital. London, governed by Mayor Sadiq Khan, offers an even more comprehensive model: the city controls a broad suite of levers—including congestion charging, housing policy, and skills funding—while retaining substantial fiscal autonomy. Both cases illustrate that when regions possess the tools to shape their own economic environments, they can overcome structural disadvantages and converge toward higher productivity levels.
Political Implications: Levelling Up Former Labour Heartlands
Beyond economics, Burnham’s devolution push carries clear political stakes. Many of the towns targeted for revitalisation—Ashington among them—are historic Labour strongholds that have recently swung toward Nigel Farage’s Reform UK. By delivering tangible improvements in living standards, job prospects, and public services, the Labour Party hopes to reclaim trust and electoral support in these regions. The “growth in every postcode” narrative thus serves dual purposes: addressing long‑standing inequities and fortifying the Party’s base ahead of future elections.
Looking Ahead: Implementation Challenges and Next Steps
While the vision is ambitious, successful implementation will hinge on several factors. Clear guidelines for the new fiscal arrangements, capacity‑building for regional administrations, and robust accountability mechanisms will be vital to avoid replicating the inefficiencies that sometimes plague centralised systems. The forthcoming months will likely see detailed consultations on the distribution mechanism for deprived areas, the design of the tourist tax, and the precise scope of responsibilities delegated to deputy mayors. Stakeholders ranging from local business leaders to community groups will need to be engaged to ensure that the devolution revolution delivers inclusive, sustainable growth rather than merely reshuffling fiscal flows without improving outcomes on the ground.
This summary captures the essence of the original article, highlighting Ashington’s plight, Burnham’s devolution‑driven agenda, the fiscal mechanisms proposed, the evidence supporting potential gains, the caveats shown by Scotland and Wales, successful English exemplars, the political motivations, and the steps required to turn vision into reality.