What does the new cabinet mean for the future of regional growth, devolution and the Northern Powerhouse?

Looking at those around the cabinet table, there is a sense that when addressing regional growth, devolution, and the Northern Powerhouse, the direction of travel may be about to change. From the Prime Minister’s own experience as Mayor of London, to his early commitments to the north, there are positive indications for regional progress. As well as this, when looking at his new cabinet, it’s clear that the new representatives are already well brought into the idea of devolution in England.

The Prime Minister

Whilst Boris Johnson has kept relatively tight lipped about the detail of much of his policies, his own stint as Mayor of London means he’s well aware of what devolution can bring to a region, as well as where some of the frustrations may be for those navigating the system of securing a deal and implementing it. For the Prime Minister's first speech outside of London, he travelled to Manchester, praising the city, but also highlighting the need to invest in towns across the north. Within this speech he went on to promise £3.6bn towards these towns (details to be confirmed).  

Beyond this, the Prime Minister has most recently signalled his commitment to Northern Powerhouse Rail through the commitment to a new Trans-Pennine route from Manchester to Leeds. It should be noted however, that we are yet to hear anything specific on HS2, a fundamental piece in connectivity jigsaw for the country and the region. Furthermore, Boris Johnson almost immediately fulfilled one campaign promise by promoting Northern Powerhouse Minister, Jake Berry to the Cabinet – illustrating his commitment to regional representation at the top decision-making table.  

Northern Powerhouse Minister

Moving onto Jake Berry, his promotion to Cabinet level means that he can work much more closely with, and have greater influence over the top decision makers in other departments. This will ensure they are considering regional rebalancing and devolution within their policy plans. For the Northern Powerhouse, having a representative at the top table should bring benefits, but it also potentially opens the door for more full discussions on how to extend existing devolution deals across the country and hopefully develop new ones. It will be important however, to ensure that all regions are similarly represented in the future. 

Secretary of State for Housing, Communities and Local Government

Sitting above Jake Berry, and now responsible for the Ministry for Housing, Communities and Local Government we have Secretary of State, Robert Jenrick. Previously a minister within the Treasury, Robert Jenrick had responsibility for devolution deals, industrial strategy and infrastructure (amongst many other things). Whilst he may have not always had the bandwidth to give this the attention it needed, Mr Jenrick has expressed a personal interest in the devolution agenda in the past. The new Secretary of State has already been heaped with praise from local government and when accepting the role was quick to highlight some priorities including the desire to ‘level up regions and share prosperity and opportunity throughout the UK’.

Chief Secretary to the Treasury  

Looking at the Northern Powerhouse more specifically, the region has another MP sitting around the top table, with Rishi Sunak, MP for Richmond (North Yorkshire), appointed as the Chief Secretary to the Treasury. This role, previously held by Liz Truss, has become an extremely influential one and has responsibility over issues such as strategic planning, infrastructure spend and transport policy including HS2.

Rishi Sunak has been a vocal supporter for the Northern Powerhouse Agenda in the past. He has called for more investment in education and skills to address the inter and intra-regional disparities that are holding the region back, as well as in infrastructure to improve connectivity across the north. Both key drivers of productivity, investments in these areas would go a long way towards supporting to unlock growth across the Northern Powerhouse. As well as this Rishi Sunak has shown his support for devolution, highlighting the appetite from his own constituency of enabling local people to have a say over their future.

Looking ahead

Whilst it is impossible to say with certainty the exact impact this reshuffle will have, having new voices around the table who have indicated their support for regional rebalancing, devolution and the Northern Powerhouse has provided a sense of optimism that this debate, which was largely shelved during Theresa May’s premiership, might once again be opened. 

Next steps

Of course the devil will be in the detail. The CBI will continue to make the case for unlocking regional growth, devolution and the Northern Powerhouse, and are developing a series of recommendations to deliver momentum on devolution across England in the future.  

The CBI is also calling for the Prime Minister and his new team to act fast to show the world that the UK remains a trusted place to do business, to create a compelling economic vision for the future of the UK, and to back business as a force for good across the country. You can read out full Business Manifesto for the new Prime Minister here.

If you would like more information on this work, please contact Hannah.