Making London poorer won’t make Britain richer, Burnham warned

Andy Burnham has been told he “can’t make the rest of the country richer by making London poorer” by a staunch ally of Sir Keir Starmer.

Steve Reed, the former housing secretary, warned Mr Burnham that people in the South and Midlands were concerned that “Manchesterism is ‘anti-London’”.

Mr Reed, MP for Streatham and Croydon North, was sacked by Mr Burnham when he ascended to No 10.

Writing for The Times, Mr Reed said: “London MPs have shared concerns with me that London could be overlooked or misunderstood now all the senior ministers taking decisions about devolution represent the north.

“But London’s economy drives the national economy – it’s bigger than the next eight biggest cities combined. You can’t make the rest of the country richer by making London poorer.”

Mr Reed warned that Mr Burnham’s devolving of powers to local authorities risked handing too much power to opposition parties.

He said: “Many Labour MPs told me they feared devolution means handing power from a Labour government to Reform and Green mayors.

“Those views must be tackled head on because you can’t devolve power while also holding onto it, and it’s vital we end the overcentralisation of power that’s left the UK with nine of the ten poorest regions in northern Europe.”

Mr Burnham was warned numerous times of unrest among his southern and London-based MPs by Mr Reed as a result of his Manchesterism politics.

The MP for Streatham & Croydon North said it “will be controversial with many MPs, including many who backed Burnham for No 10. They will perceive it as a loss of their own power – because it is”.

He also warned that Mr Burnham’s commitment to Manchesterism might play into opposition hands in the 2028 London mayoral elections.

A war with London

Sir James Cleverly said last month that Mr Burnham was “blaming London for London’s own success” as he launched his mayoral election candidacy. He said of the Prime Minister: “He’s got a war with London, and London needs someone to fight its corner.”

Figures suggested last month that the Prime Minister’s devolution push would drive 90,000 bankers and lawyers out of London.

The Prime Minister’s move to boost regional economies will see white-collar jobs traditionally located in the capital shift to other big UK cities by 2031, according to research from recruitment agency Robert Walters.

The recruiter also said London’s high cost of living was forcing bankers and lawyers to seek alternative locations for their careers.

According to its forecasts, Manchester, Leeds and Birmingham will be the biggest winners from Mr Burnham’s policies, by taking more than half of the relocated jobs.

Mr Burnham also plans to strengthen the powers of Britain’s regional mayors and give them a share of income tax revenues.

The shift is expected to give a £9bn boost to Britain’s regional economies by 2031, with the migration of white-collar workers poised to increase spending on everything from coffee shops to office space.