Andy Burnham on Monday unveiled his economic blueprint for Britain which is set to see the “biggest transfer of power out of Whitehall in modern times”.
The landmark reforms are expected to lead to tens of thousands of government jobs being moved out of London as far more decision-making is devolved to the regions.
London Mayor Sir Sadiq Khan and other regional mayors will get more powers over housing and education.
Seeking to rebalance the UK’s economy, Prime Minister-in-waiting Mr Burnham pledged to replace a “centralised, top-down model” with locally-driven economic growth.
One of his flagship proposals is a 'No10 North' to drive devolution and coordinate long-term economic renewal across every nation and region of the UK.
After Sir Keir Starmer was forced to resign by a Labour revolt, Mr Burnham stressed in a speech in Manchester that there must be a “change in how Britain is governed, not just changing who governs it”.
His “central proposal” is a huge transfer of power out of Whitehall in a ten-year mission to raise living standards through reindustrialisation, housing, infrastructure and reform of key utilities.
His ten-year plan will spark speculation that, if he becomes Prime Minister in mid-July as expected, he has his eyes set on two, or even three terms in office.
His radical agenda has already triggered a warning from Sir Sadiq not to cut investment in the capital as billions more pounds are channelled to boost infrastructure in the North, Midlands and other regions.
The former Greater Manchester Mayor is also said to be considering splitting up the Treasury to create an economic department in Darlington to drive growth with a finance ministry remaining in Whitehall.
Communities Secretary Steve Reed on Sunday said Mr Burnham would put “rocket boosters” under devolution which he said would be good for London as it would reduce UK migration to the capital easing its housing crisis.
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Speaking at the People’s History Museum in Manchester, Mr Burnham pledged to “lift Britain back up to where it should be” and deliver "good growth in every postcode".
His reforms aim to “give Britain the circuit-breaker it needs” to drag it out of the economic slow lane.
He signalled a significant response to the report by former Labour Cabinet minister Alan Milburn into the number of young people who are not in education, employment, or training.
London has the highest unemployment in the country, at 6.6%, according to the latest figures from the Office for National Statistics, compared to 5% in the North West, and 2.9% in the Wigan area which includes part of Mr Burnham’s Makerfield constituency.
Mr Burnham also laid out a vision for major reform to the education system so there is “true parity between academic and technical” courses, “offering a path” to all young people, and no longer “overly-focused on the university route”.
Public procurement will be reformed to maximise support for British jobs and industry, with companies expected in return to offer more work placements and apprenticeships.
Mr Burnham called for a new partnership between government, business, universities and communities, drawing on his Greater Manchester Mayoralty.
He said that he is standing to be Labour leader, and PM, to “change politics to make it work for us”.
Politicians, including himself, had to take responsibility for voters “losing trust in politics”, with support for Labour and the Tories having nosedived in the polls as people turned to Nigel Farage’s Reform UK and Zack Polanski’s Green Party to tackle the nation’s problems.
Mr Burnham argued for a “new political culture focused on place before party”, as well as “problem-solving before point-scoring” and long-term thinking over short-term politics.
But Conservative Party chairman Kevin Hollinrake accused Mr Burnham of avoiding the difficult questions facing the country.
“Andy Burnham’s big idea is to shuffle power between politicians,” he said.
“Not fix the welfare system. Not cut the taxes strangling working families and British business. Not fund the defence our country desperately needs.”