How feasible is Burnham’s ‘Head North’ plan?

While not much has been announced regarding Burnham’s potential policies as Prime Minister, he has laid out his ‘Head North’ plan  for a more equal Britain in his 2024 book ‘Head North’, which was co-written between Burnham and Liverpool City Region’s Metro Mayor Steve Rotheram. 

Much of this ten-point plan focuses on reducing inequality between different regions of the UK, with one proposed idea being devolution, done by reducing centralised control and handing more decision-making power to local councils. Such reforms would certainly shake up the existing system of taxation, with tax revenues being increasingly funnelled towards councils rather than the centralised government budget, allowing taxpayers’ money to be allocated to projects that would be in their best interests. For example, projects such as the HS2 railway were seen as a major investment to improve growth prospects in the North, but it was terminated by the government for its supposed diminished economic importance post-pandemic following changes in travel patterns [1] — if councils had more of their own budget, they would have greater flexibility in deciding what projects would best serve their residents. 

However, this begs the question of whether or not this could potentially increase the very inequality that it aimed to decrease. Naturally, councils in richer areas are able to raise more tax revenue with wealthier residents paying higher taxes despite councils in poorer areas being more in need of increased budgets to improve the underlying infrastructure in the area. 

Introducing increased devolved powers for councils should also come with ensuring that this increase in political power doesn’t mean a decrease in economic ability for councils, which is no mean feat, as illustrated by the problematic Barnett formula. This formula determines the funding for the devolved nations, but has been highly controversial for being too rigid, with the amount of money being allocated being wholly dependent on how much Westminster spends and without concern for local needs [2]. This should be a cautionary tale for if devolution is to occur: budget allocations are much more nuanced and fluid than a simple mathematical formula given the highly human impact they have, and solving the issue of budget allocations would require thorough consideration, considering social impact beyond numbers. 

While the idea of devolution democratising public spending could truly make an impact on geographical inequality if done well, it is also important to consider the context in which the economy is currently in. One of the greatest things that Burnham is unable to introduce into the economy is stability — being the seventh prime minister in a decade, introducing yet another shake-up to the economy would certainly rattle consumer confidence and potentially even investor confidence. Indeed, fast radical changes spook markets, much like Truss’ 2022 mini-budget, which had a major impact on gilt prices in the UK [3]. 

Whether or not Burnham’s ‘Head North’ plan, specifically the idea of devolution, is feasible depends highly on how it is implemented and the climate in which it is introduced. While a largely sound approach to reducing regional inequality on paper, this depends on ensuring that the mistakes of the Barnett formula aren't repeated by allocating budgets in a more compassionate and nuanced manner, as well as doing so at a time where the economy is more open and receptive to change. 

By Macy Ng

Footnotes:

[1] Austin, Katy, Chris Mason, and Kate Whannel, 2023. “HS2 West Midlands-Manchester line to be scrapped.” BBC News. October 4, 2023. https://www.bbc.co.uk/news/uk-politics-66998692?app-referrer=deep-link.

[2] Phillips, David. 2026. “The Barnett Formula | Institute for Fiscal Studies.” Institute for Fiscal Studies. January 22, 2026. https://ifs.org.uk/articles/barnett-formula.

[3] Lawford, Melissa. 2025. “Liz Truss Crisis Is Still Damaging Britain, Claims Goldman Sachs.” The Telegraph. May 15, 2025. https://www.telegraph.co.uk/business/2025/05/15/liz-truss-crisis-still-damaging-britain-goldman-sachs/.