Andy Burnham is to claim that London is suffering due to the economic failure of the north in a speech outlining radical plans to devolve powers and money to England's regions, according to reports.
The newly-elected Makerfield MP, who is expected to become Prime Minister next month, is to deliver his first big policy speech since Sir Keir Starmer’s resignation, outlining an economic strategy under which Whitehall budgets will be slashed and money diverted to be spent by regional mayors, the Times reported.
The speech on Monday comes amid reports he is planning to carve up the Treasury to move part of the flagship Whitehall department to the North.
He expected to set out plans for a “devolution-first” agenda across Whitehall, under which departments will be expected to assess which areas of their responsibility and funding should be transferred to regional governments.
It is likely to reduce the size of Whitehall as swathes of roles in departments such as transport, education and work and pensions are devolved.
Plans to move funding and jobs away from London has created fears of major damage will be inflicted on the capital's economy.
Labour MPs fear a focus on regenerating the north of England could cost the party seats in London and the south.
But Mr Burnham is expected to argue that his plans will make the whole country better off, The Times reported.
The MP will reportedly argue that, for too long, richer parts of the country have been subsidising poorer areas without any attempt to distribute economic growth evenly.
The National Office of Statistics calculates that people in London pay £24,400 in tax on average but get back just £19,500 in spending on public services.
In the southeast they pay in £17,600 and get £15,900 back.
A devolution agenda is in line with the views Mr Burnham set out in his book, Head North, alongside his friend and fellow mayor Steve Rotheram.
In the book, Mr Burnham said the current system saw regional leaders going “on bended knee” to Westminster and called for a “more balanced approach, where councils and mayors were dealt some cards too”.
If Mr Burnham remains the only candidate for the Labour leadership, his speech will come exactly three weeks before he enters Downing Street.
Nominations for the leadership close on July 16, and if Mr Burnham is the only candidate he will be formally declared Labour leader at a special conference the following day.
But precedent states he will not become prime minister immediately, with the handover taking place on the next working day, July 20.
Meanwhile, Mr Burnham continues to mull his future cabinet.
Rachel Reeves appears to have conceded she will no longer be staying on as Chancellor, with several senior ministers including Home Secretary Shabana Mahmood and Energy Secretary Ed Miliband reportedly in the running to succeed her.
An unlikely alliance of some trade unionists and city traders have reportedly urged Mr Burnham against appointing Mr Miliband as chancellor, because they believe his net zero policies to be damaging.
But transport union the TSSA has thrown its weight behind Mr Miliband.
Questions also remain over whether Ms Mahmood will remain at the Home Office, with some Labour figures saying he should scrap her proposals to increase the length of time immigrants have to wait to apply for indefinite leave to remain in the UK.
