Labour MPs urge Manchester hub to lead Britain’s industrial revival

The Guardian ·

More than 90 Labour backbench MPs say the government’s plan to rebuild Britain’s industrial base will fail unless it is led from the prime minister’s Manchester office, No 10 North. They argue that years of deindustrialisation have left the civil service without the knowledge and capacity to plan effectively, and want the effort focused on creating jobs in places that need them most.

The MPs propose a Reindustrialisation Act with clear job targets and ministerial accountability, and want Louise Haigh to oversee the work. They also suggest turning the National Wealth Fund into a Reindustrialisation Development Corporation to finance industry. Labour’s existing industrial strategy identifies eight potential growth sectors, including advanced manufacturing, clean energy and defence.

In short

  • More than 90 Labour MPs call for industrial policy to be led from Manchester.
  • They propose a new law with job targets and ministerial accountability.
  • A transformed National Wealth Fund could finance industrial renewal.

Steelman: both sides, in good faith

The strongest fair case each way — we don't pick a winner.

The case for

Supporters argue that decades of deindustrialisation have weakened the state’s ability to guide industrial growth, so a dedicated team based in Manchester could bring decision-making closer to places most in need of jobs. A law with clear targets and ministerial accountability, backed by a public investment body, could provide the focus and finance needed to build strategic industries.

The case against

Critics could argue that locating the effort in the prime minister’s Manchester office risks creating a parallel centre of government and politicising decisions about where investment goes. Clear targets and a new development corporation may also add bureaucracy or commit public funds before the government has shown that it can select viable projects, while existing industrial strategy and institutions could be strengthened instead.

Explained simply

Britain’s industrial base has shrunk over many decades as manufacturing and other industries have declined or changed. Governments use industrial strategies to support sectors they see as having growth potential, such as advanced manufacturing, clean energy and defence.

No 10 North is the prime minister’s office in Manchester, created to give the government a base outside London. The National Wealth Fund is a public investment body intended to help finance projects; Louise Haigh is a Labour MP and former cabinet minister.

The debate concerns how much the state should direct investment and job creation, and where decisions should be made. Supporters of a stronger regional focus say it could bring work to places that have lost industry, while targets and ministerial accountability would make progress easier to assess.

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Originally published by The Guardian as “Drive reindustrialisation from No 10 North or risk failure, MPs tell Burnham”.

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