Lord O’Neill, a former Treasury minister and ally of Andy Burnham, has criticised the Prime Minister’s promise of “growth in every postcode”. He warned that attempting to intervene directly in every area could waste taxpayers’ money and argued that reducing government borrowing costs and mortgage rates would be a more effective route to nationwide growth.

O’Neill said markets needed confidence that public spending would be controlled, including through more realistic policies on welfare and pensions. He argued that London’s economic performance remains crucial to national growth, while regions such as Greater Manchester, West Yorkshire and the West Midlands would need sustained growth of around 5% a year to make a major difference; he also called for greater honesty about regional inequalities and an end to political over-promising.