Regional Growth Two Years In: Is the government on track to boost UK growth by closing regional divides?

Labour’s 2024 General Election manifesto claimed the UK’s stagnant rate of economic growth over nearly two decades came from the “inability to accept that a strong economy can only be built on the contribution of every community and every person”. The UK is, it argued, “too centralised” with the economic potential of regions and communities “ignored.”

The public were promised a “devolution revolution” to drive growth, with “deeper and wider” sub-regional governance reform in England (more, stronger mayors); an ambitious public investment plan, with a ten-year infrastructure strategy and national industrial strategy and regional development priorities; and a new National Wealth Fund investing in business
as the government raised investment in the public sector.

Two years on from the 2024 General Election, after two Budgets, one Spending Review and a full parliamentary session – not to mention a radically altered international environment following the re-election of Donald Trump and resurgent global uncertainty - we take stock of whether the Starmer government has so far delivered on this stated ambition. Our overall assessment is that the government is currently at risk of squandering the best opportunity in a generation to address the UK’s persistent regional inequalities.

But a change in approach is imminent. Two years on from the 2024 General Election, the devolution agenda and regional growth is at the centre of Andy Burnham’s platform to be the next Prime Minister. Will his "No 10 in the North" finally give rebalancing Britain the political support from the top it has long needed, or will it repeat the old story of bold devolution rhetoric outrunning Whitehall delivery? Having assessed the performance of the Starmer Government against the ten recommendations we made in 2024, we then look at what a new Burnham administration should do to diagnose and turnaround Britain’s sluggish economic growth and regional divides.