He relays a story about his time as chief secretary to the Treasury in 2007 when he was told: “No project in the north passed the Green Book, Minister.” He told me the same in 2020 when there were murmurings of reform to the formula. Chancellor Rachel Reeves pursued pilot projects to change the approach that could favour local investment.
In the book, Burnham also advocates tearing up the Barnett formula, which allocates public spending, topping up spend for Scotland, Wales and Northern Ireland so they do not lose out to England as a whole. The effect, Burnham argues, is that the north of England is left squeezed in a “pincer”.
In Head North and his recent speech, Burnham points to Germany’s “Basic Law”, with its duty of “equivalent living standards” across the regions. Such a law, he argued, would protect local government and give regions a right to be consulted on long-term decisions.
Burnham also advocates significant constitutional change, including a form of proportional representation and the replacement of the House of Lords with a “Senate of the Nations and the Regions”, alongside devolution of powers over large swathes of public services to regional level.
On Net Zero he proposes a “Northern Way”, which subsidises the transition, retrofits, cutting bills, and building exportable locally owned industry. He contrasts this with a “Whitehall way”, which he characterises as bans, charges and taxes that hit the poorest.
The actual policy consequence of this will have to reckon with rising global energy prices, pressure on household budgets, and some impatience from North Sea energy interests to pump more oil and gas. There are some contradictions in for example, full tax and spend devolution for every region. Would the south-east get to keep the taxes it raises? Some aides recently played down any changes to the Barnett formula amid concerns from Scottish politicians.
