Power Closer to Place: the new Prime Minister and devolution
The new Prime Minister has made one thing abundantly clear: England’s future will not be shaped solely from Westminster.
Andy Burnham entered office with a long-held belief that decisions are almost always better when they are made by people who know their places and understand their communities. As former Mayor of Greater Manchester, he has seen first-hand what can be achieved when local leaders are trusted with the powers and resources to shape their own futures. Now, as Prime Minister, he is seeking to put that principle at the heart of Government.
In her recent speech at the Northern Housing Partnerships conference Tracy Harrison, Chief Executive, NHC, reflected on the vital role Housing Partnerships will play in the devolution landscape under the new Prime Minister, saying:
“Housing partnerships are devolution in action…
“They help us move faster, align investment, solve problems collectively and make sure housing has a stronger voice in wider conversations about growth, health, skills, transport, net zero and regeneration.
“And this is exactly the sort of collaboration Andy Burnham was talking about in his speech… setting out his vision for the country.”
Central to the Prime Minister’s vision is a commitment to a significant programme of devolution. The Prime Minister has established No.10 North in Manchester, creating a permanent centre of Government outside London and signalling a fundamental shift in where decisions are made. Designed to bring ministers, mayors, and local leaders together around a shared mission of growth – No.10 North reflects a belief that solutions are stronger when they are shaped with places.
For those working across housing, regeneration, and place-making the direction of travel will feel familiar. The Government’s approach recognises that growth does not happen in silos. Housing, transport, skills, infrastructure, health, and regeneration are intrinsically linked – and the most successful places are those able to align investment and delivery around a shared vision. In many ways, this reflects the same partnership-based approach that has long underpinned successful work across the North.
Perhaps the most significant policy announcement so far has been the decision to give English mayors a share of locally generated tax revenues. Under plans announced by the Prime Minister, mayoral authorities will retain a proportion of income tax revenues for the first time. And from next spring, mayors will begin retaining a greater share of business rates. The principle is simple: when places create jobs, attract investment, and grow their economies, they should keep more of the rewards. Rather than relying on decisions made in Whitehall, local leaders will have greater freedom and flexibility to invest in local priorities and respond to local challenges.
This represents a significant shift in the relationship between central and local government. By giving places greater control over their resources, the Government aims to support longer-term planning, stronger accountability, and more effective delivery. For mayoral authorities, it creates new opportunities to invest in the infrastructure, housing, skills, and regeneration programmes needed to drive sustainable growth.
The direction of travel is significant for York and North Yorkshire Combined Authority, which has recently been recognised as the first rural mayoral area in England to become an Established Strategic Authority. This important milestone reflects the strength of local governance and delivery arrangements, while positioning the region to access a deeper level of devolution in the years ahead. Crucially, it places York and North Yorkshire on the pathway towards an Integrated Settlement, providing greater flexibility to align funding across housing, transport, economic development, and skills. As Government continues to devolve powers and funding from Westminster, the region is well placed to take advantage of the opportunities this new model presents.
Alongside these reforms, the Prime Minister has been clear that devolution should become the default rather than the exception. The challenge for Whitehall, in his view, is no longer to justify why powers should be devolved, but why they should remain at the centre. This marks a profound change in thinking, one that recognises the value of local leadership and the importance of empowering communities to shape their own futures.
For places across the North, the opportunities are significant. Greater powers, more flexible funding and stronger local leadership create the conditions for a genuinely place-based approach to growth. Housing will have a critical role to play in that agenda, not simply as an outcome of growth but as one of its key enablers, supporting regeneration, improving health outcomes, attracting investment, and creating thriving communities.
The Prime Minister’s vision is rooted in a simple but powerful idea: the people who understand a place best should have the greatest influence over its future. Whether the challenge is building new homes, revitalising town centres, improving transport connectivity, or creating opportunities for future generations. Power should sit closer to the communities it serves, and the future of devolution will be built by those who know their places best.
