Backbenchers: Reindustrialisation Fails Without Manchester HQ

A group of more than 90 Labour backbench MPs issued a warning on Sunday that Prime Minister Andy Burnham’s plan to rebuild Britain’s industrial base will fail unless it is managed directly from his office in Manchester. The MPs, who have circulated a new briefing paper, argue that the current government lacks the necessary expertise to execute such a strategy effectively from London.

The paper asserts that decades of deregulation have left the state with diminished capacity. It describes a government that is slow to make decisions and less knowledgeable about the economy and businesses than it once was. The group contends that this institutional gap requires a legal framework to correct the course of industrial policy.

The MPs are urging Burnham to pass a Reindustrialisation Act. This legislation would establish specific targets for job creation through the expansion of manufacturing capacity. It would also hold ministers accountable for meeting those targets. The group states that comprehensive planning is essential to achieve reindustrialisation.

The proposal calls for the creation of a dedicated industrial headquarters at No 10 North, the prime minister’s Manchester outpost established in July. The MPs want this office to oversee the entire effort under the direction of First Secretary Louise Haigh. Additionally, the group proposes transforming the National Wealth Fund into a Reindustrialisation Development Corporation focused on providing capital for UK industry.

Andy MacNae, the MP for Rossendale and Darwen and chair of the group, expressed confidence in Burnham and Chancellor John Healey. However, he cited an inertia within the civil service that favors growth in already prosperous cities. MacNae argued that policy must instead deliver jobs to areas with the greatest need and build products that ensure national resilience.

Steve Yemm, MP for Mansfield, noted that other nations are actively reindustrializing while Whitehall officials still view industrial policy as a nostalgic concept. Lorraine Beavers, MP for Blackpool North and Fleetwood, emphasized the need for explicit instructions from the prime minister to drive change. She stated that Whitehall rarely fixes problems unless told to do so.

The current industrial strategy identifies eight sectors for growth, including advanced manufacturing and clean energy. Healey, who will deliver his first budget on Wednesday, previously promised a new age of industrialization during Labour’s conference last month. The party’s plan aims to achieve good growth in every postcode through this renewed focus on production.