Will Andy Burnham Finally Tackle the Regional Imbalance in the UK?

Roman Ellis

Prior to becoming Prime Minister in July 2026, Andy Burnham had served as Mayor of Greater Manchester since 2017. Having this role gave Burnham a different perspective on one of the UK government’s most longstanding challenges: reducing regional inequality. As mayor, Burnham prioritised growth in Greater Manchester, having achieved growth of 17.4% within his first six years in office. Having improved regional economies, Burnham now faces a key question: will he be able to replicate his successes on a national scale as Prime Minister?

Introducing the ‘Bee Network’ was one of Burnham’s most successful initiatives as Mayor, aiming to improve Greater Manchester’s public transport. With single bus fares capped at £2 (despite the national cap of £3), and the implementation of 24/7 bus services, the success of Burnham's network shows how local governments can make transport more accessible. This approach could, therefore, be used in hopes of narrowing the North/South divide by reducing geographical immobility, particularly with a Prime Minister who has done it before. The building of HS2 already demonstrates the improvement in infrastructure that is to come, and despite the railway now ending in Birmingham (and no longer going up to Manchester and Leeds), the project signifies a shift in the right direction in reducing regional imbalances.

However, the divide is also apparent in many other areas of the economy, not just geographical mobility - productivity and living standards being some of them. The Office for National Statistics found that, in 2022, productivity in London was 26.2% above the national average, with the East Midlands having the lowest labour productivity in England, being 15.8% below average productivity. A large factor behind this is due to the concentrated, high-skilled labour in London, with only 10% of labourers being low-skilled, compared to cities such as Birmingham and Bradford, where this figure is just under 20%. Policies to attract businesses to relocate could be used by Burnham to move high-skilled labour to the North and address this issue, as done by Margaret Thatcher when she encouraged Nissan to open their factory in Sunderland. The government offers firms tax reliefs and investment grants in order to incentivise them to move.

High-skilled jobs becoming more available in northern regions would not only encourage skilled labour to relocate and give more job opportunities to current residents, but would also make northern cities more likely to retain their graduates. A study by Centre for Cities shows that 74% of London graduates go on to stay and work in London, whereas in Manchester and Birmingham (the 2nd and 3rd largest student cities in the UK, after London), the figures are only 57% and 53%, respectively. Improving the quality of the labour force in the North would improve productive capacity and promote economic growth. A growing economy in northern regions would attract further investment from other firms wanting to relocate, creating more and more jobs.

If Burnham were to implement these supply-side policies, productivity and long-run growth would improve over time. He may, however, be hesitant to go through with such a policy. This is due to the time lag of supply-side policies; the cost occurs now, but the positive effects might not become visible until after the next election, reducing his chances of becoming re-elected - a critical demonstration of political short-termism.

Ultimately, Andy Burnham’s time in Greater Manchester was successful in addressing regional inequality, and is a promising foundation, but achieving national prosperity requires more than introducing better transport. Although geographical mobility is key in a strong economy, it must be accompanied by skilled, well-paid jobs in regions that are currently lacking them. By creating policies to promote long-term growth, Burnham could narrow the divide between the North and the South, and improve the living standards and available opportunities for previously overlooked regions. His manifesto does look promising, with a focus on regional investment, and even a ‘No. 10 North’, in which he hopes to establish a government base in Manchester, named, naturally, after 10 Downing Street.