Reading view

A German conservative mayor backed the AfD. Now Merz is on the spot.

A conservative German mayor’s €10,000 donation to the far-right Alternative for Germany (AfD) is making things awkward for his party’s leaders.

Bernd Prange, a Christian Democrat who serves as mayor of Altmärkische Höhe in Saxony-Anhalt, wrote in an open letter on Wednesday that he would be voting for the AfD in the state’s upcoming election on Sept. 6. “I want the AfD to become so strong in the Saxony-Anhalt election that it can govern alone,” wrote Prange.

The goal, he said, was for his own party to “finally wake up,” tear down Germany’s political firewall and abandon what he called its shift to the left.

The letter prompted swift criticism from within his own party: “I don’t like it. I can say that very clearly,” Saxony-Anhalt CDU Premier Sven Schulze told POLITICO’s Berlin Playbook Podcast on Thursday. “I think his approach is wrong. Definitely,” adding that he did not share Prange’s views “in any way.”

As for whether the mayor will remain a Christian Democrat, Schulze was in no rush to make a call: “We’ll deal with the issue after the election,” he said. “Right now, it’s campaign time.”

In an interview published earlier on Wednesday, Schulze had dismissed speculation about possible defections after the election: “No, someone switching from the CDU to the AfD will not happen,” he said. And while Prange hasn’t formally changed political allegiance, he said he wants Chancellor Friedrich Merz “removed” as CDU leader and accused him of running a party that is “giving up the conservative core of the Union.”

The episode hits the CDU at a perilous moment, as Merz struggles to maintain the country’s “firewall” against cooperation with the far right while support for the AfD surges across eastern Germany.

The AfD is polling between 41 and 43 percent in Saxony-Anhalt — almost twice the CDU’s 22 to 24 percent — putting the far right within striking distance of governing alone. Merz continues to rule out cooperation with the AfD, but September’s elections will put that under sustained pressure: Saxony-Anhalt votes on Sept. 6, followed by Berlin and Mecklenburg-Western Pomerania on Sept. 20.

The Axel Springer Global Reporters Network harnesses the resources of the company’s newsrooms to publish ambitious scoops, investigations, interviews, opinion pieces and analysis. It allows journalists — including those from POLITICO, Business Insider, WELT, BILD, Onet and Fakt — to collaborate on major stories for an international audience of hundreds of millions across platforms: online, print, TV and audio.

Maximilian Stascheit and Carlotta Diederich contributed to this report.

  •  

Andy Burnham’s plan for Britain starts above a Manchester cocktail bar

MANCHESTER, England — On the day in June that Andy Burnham ended his nine-year term as mayor, Manchester’s authorities sent him off with a parting gift: a wingback chair whose shiny fabric was printed with the city’s trademark worker-bee symbol and its rallying cry “we do things differently here.”

One month later, Burnham moved to 10 Downing Street, the sprawling Georgian terrace in London replete with mice, net curtains, cranky heating and patchy phone signal from which six other prime ministers have struggled to run Britain in the last decade. But the worker-bee chair did not accompany him on the trip south. It moved just a half-mile, through a city that was once the engine of the industrial revolution but for more than a century has struggled for balance against the political, economic and military power consolidated in the capital.

The chair now sits beside a 10-seat conference table in what Burnham calls “No. 10 North,” a refurbished 1980s office block he has chosen as his auxiliary seat of power. What remains of the largest empire the world has known is now governed most Fridays from above a discount cocktail bar, where Burnham has replaced Downing Street’s concentric rooms of gatekeepers with clinically lit floors of open-plan desks. Staffed by several political allies from his time in Greater Manchester and decorated with a gold record of The Queen Is Dead, the 1986 album by Manchester band The Smiths, it is Burnham’s “comfort zone,” a person who has worked with him said — “an homage to his time” as mayor.

No. 10 North is more than Burnham’s own Manc-a-Lago, where he retreats ahead of weekends at his family home nearby. The prime minister, who succeeded Keir Starmer as the benefactor of a Labour Party putsch on July 20, has made it a central aim of his premiership to move power and money out from limestone buildings on Whitehall, the old heart of London’s civil service — by centralizing some of Whitehall’s power further in No. 10 North, and handing other parts of it to local leaders outside government. He is banking Labour’s political future, and that of the British center-left, on being able to reverse a decades-long decline of England’s former industrial heartlands, one that fueled a political polarization and drove the 2016 vote for Brexit.

“What we’re bringing is a different type of energy,” Caroline Simpson, the mayoral authority’s former chief executive whom Burnham has tasked with heading up his new northern outpost as deputy chief of staff, told POLITICO Magazine in her first interview since assuming the role. “That’s really the point about No. 10 North — to connect our places, connect devolution back into the heart of governing.”

Burnham’s political opponents — and, privately, some civil servants, who have seen past prime ministers try to move power out of London — have derided the Manchester office as a gimmick, a soundstage for a politician attuned more to optics than policy detail. (No. 10 North is “absolutely not” a gimmick, insists Simpson.) The office is already up and running, but some of the basic details of how it will geographically redistribute power — such as how funding or boundaries will be configured — have not been worked out. An early test of Burnham’s commitment to redistributing his government’s sparse finances will come on Oct. 28, the day of his first budget, and in a cross-government spending review in 2027.

POLITICO Magazine spoke to 28 current or former civil servants, political officials, regional officials, advisers and politicians to illuminate what life is like inside No. 10 North and the broader policy vision it reflects. Many were granted anonymity to speak frankly about the workings of Burnham’s government. Downing Street declined to comment on the specifics of this article, beyond making Simpson available for interview.

Burnham took office on a pledge to “rewire Britain.” He has to rewire the house first.

Moving to Heron House

The incoming prime minister discussed the idea of setting up No. 10 North with his closest aides ahead of the June special election that sent him back to Westminster, a person with knowledge of the conversations said.

But the idea was kept secret from all but his innermost team until Burnham announced it in late June. He did not even tell Simpson about it in advance. “It all happened very, very quickly,” she said.

After winning the June special election, Burnham scrambled to make No. 10 North a reality. He wanted to put it in Manchester — but where, exactly, wasn’t clear. He told an interviewer in early July that his preferred site was the planned Manchester Digital Campus in the Ancoats area of the city, but the site he named will only open fully in 2032. Burnham’s team looked at options for other government buildings in Manchester during a few frantic weeks of transition talks with the civil service.

A few days before he took power, Burnham and the civil service agreed on a temporary solution: Heron House, a red-brick office block that was renovated in 2019. No. 10 North occupies a floor that had been prepared for use by GCHQ, the U.K.’s intelligence and cyber-security agency. GCHQ was happy to vacate the floor; one senior government official said the agency was “bending over backwards to be helpful,” since it still has senior figures in other parts of the building who will find it useful to be near the PM. Less happy about the arrangement: Greater Manchester Police, which has been under more strain thanks to the burden of protecting the PM and building. It had an initial back-and-forth with London’s Metropolitan Police about when each force should be responsible for Burnham’s security, a person with knowledge of the talks said, and has raised concerns about who will pay the long-term bill. A Greater Manchester Police spokesperson said the force was still working with government departments on security arrangements and “the cost of this is yet to be determined.”

There was a recent model for moving a core government function from Westminster to the north, and Burnham’s team is relying on some of that expertise. Former PM Boris Johnson opened government offices outside London including the Treasury, which launched a campus in the north-eastern railway town of Darlington, conveniently near then-Chancellor Rishi Sunak’s large family home in North Yorkshire.

Beth Russell, the senior official who leads the Darlington campus, has been advising on the setup of No. 10 North. But the projects are not the same; Darlington has around 350 Treasury civil servants across all ranks (plus more from eight other departments) while No. 10 North currently has only 50 or so, many of them necessarily senior. That means Darlington’s boasts to have recruited 80 percent of its staff locally, including from nearby schools, are unlikely to be repeated in No. 10 North.

Heather Scott, the veteran Conservative who was leader of Darlington Council at the time, argued local recruitment had made the project a success; some young people “never thought that they would have an opportunity to work for a government office.” Local staff may also think (and therefore make policy) differently, because they live outside London. “They’re not in £5 Gail’s coffee world,” said one Labour official, referring to a high-end chain bakery.

Burnham has, though, poached many members of his old mayoral team to No. 10 North — some of them based fully in Manchester and others splitting their time between there and London. Simpson will be a political special adviser while others will be non-partisan civil servants including John Wrathmell, who influenced thinking on “Manchesterism,” Burnham’s vision of putting the needs of a place above political ideology by combining private investment with state intervention. They were joined in recent weeks by Amy Davies, who ran Burnham’s calendar as mayor; she has been given the job of executive assistant to the PM, according to two people with knowledge of the appointment. (No. 10 does not routinely comment on staffing matters.) Other civil servants who join No. 10 North will already have been based outside London or want to return to where they grew up.

But in the meantime, civil servants have descended on Manchester from afar. No. 10 North’s Director General Sam Lister — its most senior civil servant — was only appointed on the Friday before Heron House opened to staff the following Monday, July 20 — the day Burnham took power, two people with knowledge of the process said. Lister declined to comment for this article (civil servants are ordinarily barred from speaking in public). Department heads were asked to suggest staff who might transfer to No. 10 North less than a week before it opened. One senior Whitehall official described the process as a “tap on the shoulder” and said the method for choosing people had been “unclear.”

Many of the 50 or so civil servants currently in No. 10 North are still based outside Manchester — which is 180 miles from London — and living in hotels for part of the week. That includes Lister, whose commute from his north London home was photographed covertly by the Mail on Sunday. After the story broke, officials were advised to stay across a variety of hotels to keep a lower profile, an official with knowledge of the process said.

Civil servants assigned to work at No. 10 North have been turning up before 8 a.m. on Fridays to secure desks that Burnham will walk past. Some ministers hot-desk. Simpson has her own office, there is a suite for ministerial use and officials are “buying the nicer furniture that comes with being the center of government,” the same official with knowledge of the process said.

Cheerleaders for the No. 10 North agenda argue this rush to action shows the team is trying to do something that British governments seldom manage — behave like a start-up. Lister wrote on LinkedIn that the unit “must maintain an agile, scale-up, non-hierarchical mindset” to work, “solving problems in real time rather than waiting for perfect answers.”

Therefore officials are anxious not to appoint too many civil servants; a person with knowledge of the planning said the total number of civil servants in No. 10 North is likely not to exceed 150, a tiny number compared to the thousands who already work in government offices outside London.

Those who do move permanently will each be able to claim up to £14,000 in relocation costs under existing rules, said the same official with knowledge of the process quoted above. They would not be expected to take a pay cut.

And then it may all churn again. Putting No. 10 North in Heron House is still only a medium-term arrangement and is unlikely to last until the nearby digital campus is open in 2032, said the same person with knowledge of the planning quoted earlier. That means Burnham’s team is looking at whether it can move somewhere else — neither Heron House nor the digital campus — in the coming years.

Burnham has pledged to work from the office every week, mostly on Fridays. (Burnham’s advisers say he will have visited five times in the month since becoming prime minister.) Despite his love of casual clothes, some of the trappings of his office follow him around. Downing Street sent its front-of-house staff up north with Burnham during his visits; aides suddenly found themselves being waited on with cups of tea.

In recent weeks the Manchester base has become such a focus of conversation that Burnham insiders have begun referring to London’s most famous street address as “No. 10 South.” Those who work there now find themselves on the receiving end of the north-south insecurity. One Labour official retorted: “No, we are No. 10!”

Downing Street and the surrounding streets still hoard the vast bulk of state power; the old Georgian building is the one with the famous black door and Larry the Cat, the feline who has lived at No. 10 longer than several prime ministers. No. 10 North has no real cat, said Simpson — but it does boast a cardboard cutout of Larry.

“Our building at the moment is tricky,” Simpson explained. Unlike Downing Street, where Larry can come and go as he pleases, Heron House has security keypads that cannot be operated by paws.

All roads lead from London

Burnham is far from the first British PM to try to break London’s hold on Britain — the result of a highly centralized government, based in a city of global finance and tourism that is more than three times the size of its nearest U.K. rival.

London was always the seat of Britain’s establishment, but northern cities — as the seat of the industrial revolution — once held a power of their own. The first steam train ran through Darlington; Manchester has a statue of Abraham Lincoln in honor of mill workers who refused to touch slave-picked cotton. (It is next to the back door of No. 10 North.)

“There was a time during which people in the north had a load of control, agency and power by virtue of being part of the industries that powered this country — by having powerful MPs, councils that were well-funded, community institutions and organizations that were coherent and well-embedded in their in their place,” said Oliver Coppard, the Labour mayor of South Yorkshire, a county west of Manchester that includes Sheffield. “Those things have all gone, or largely gone, and communities are fractured. So people don’t have agency; they don’t know who to reach out to get things to change.”

Thirty years ago the U.K. had ceremonial mayors instead of empowered municipal ones, and no true parliaments for the nations outside England. Since then there has been an endless ratchet of pledges to move power outside Westminster. Labour’s Tony Blair set up democratic bodies for Scotland, Wales, Northern Ireland and London, but kept centrally-run agencies for England’s regional development (Simpson worked in one of them). Conservative David Cameron followed with his “northern powerhouse,” which gave some English cities mayors and funding deals. Boris Johnson, who built his profile as London’s mayor, extended the model to rural areas, seizing on the regional divides that drove the 2016 Brexit vote with his promise to “level up” Britain.

Yet England is still “very centralized” compared to the U.S. and its system of federalism, argues Simpson: “We are one of the most centralized countries in the Western Hemisphere. We have very little true devolution.” Henri Murison, director of the Northern Powerhouse Partnership, a business lobby group, added: “Our country is basically designed so we only have a federal government, we have no state government.”

And so Burnham, who decided in 2016 in a pub in Westminster that he would quit London, where he was serving in parliament and had previously been in cabinet, and run for mayoral office, now pledges to go further still. His plan is shaped by those nine years as mayor, when he was infuriated by how the system worked in practice — or didn’t.

He has vowed to extend devolution to more areas of England and go beyond the traditional focus on economic investment, looking also at public services such as bus networks. He is planning to tidy up the messy patchwork of boundaries for police, health and fire services that he confronted in the role. He says he will give mayors more true economic freedom; they will be allowed to spend an allotment of national income tax, and commit to more expensive projects without national approval, giving them a predictable income stream rather than forcing them to chase new grants each year. Regional officials will have less frenzied oversight from Whitehall. (One senior Labour figure in a mayoral authority joked that they had to tell the central government how many thumb tacks they had bought.)

“The conversation is completely different from what it was,” said Greg Clark, the Conservative minister for decentralization under Cameron in the early 2010s. In the early 2010s, he explained, “the direction was very much centralization. There was no real debate about devolution from the city deals onwards. These things have now become irreversible.”

Burnham’s policy vision is contained in a rare joint statement of his Cabinet on July 31, less than two weeks after he came to office. Thrashed out over pre-handover “access talks” between Burnham’s top aides and Antonia Romeo, Britain’s most senior civil servant, it said ministers had agreed to “the full shape” of how the government’s structure will shift power away from London before the next election. The seven-page PDF is “what people in No. 10 are excited about,” said Murison. Burnham deliberately imposed his end point without a detailed plan instead of letting Whitehall pore over drafts; one ally said it was to avoid his plans being “sanitized.” Romeo sees it as a foundational document too; she believes she could become the cabinet secretary who presided over the greatest change to the state in decades. Officials are now in what they privately call a 100-day sprint to produce a detailed policy paper in the fall that will set out more about how Burnham intends to actually implement the vision.

In their old jobs in the mayoral authority or elsewhere in Whitehall, No. 10 North aides had already looked to Germany and France for inspiration, including on the countries’ regional approaches to industrial strategy. Senior officials have also asked the BBC for advice after the national broadcaster relocated several operations to Salford — a district of Greater Manchester — in 2011. “The BBC didn’t just land as an island,” said Simpson. “The BBC created a whole creative sector around it.”

They may need the advice. The Cabinet document promises a “major transfer of powers, resources and functions” from central government to mayors and councils; that signals that Burnham intends to shrink Britain’s national civil service, which has billowed by 100,000 people in six years to around 550,000 after the Covid pandemic and Brexit. That will be “uncomfortable,” admitted the person with knowledge of the planning quoted earlier.

Burnham and his team have given no clue of how many civil servants they plan to cut. (“I don’t think they know,” said the official with knowledge of the process quoted earlier in this article.) Simpson said it will mean moving “significant resource from Whitehall” and into local areas, but added: “I am not going to put a figure on what that is going to look like.”

Nervous civil servants will be kept waiting. While Burnham’s October budget will set out much of the detail, the trade-offs may only appear in their starkest form in next year’s Treasury spending review. The small print of that will likely show that money is being held back from some Whitehall departments, especially outside the most politically contentious areas such as defense and health, to spend more on local and regional government. Burnham’s choices are even more difficult because Labour’s last spending review, under Starmer, frontloaded spending early on but tightened it after 2027.

One of the toughest decisions, on where to define the boundaries of police forces, could put Burnham in potential conflict with his home secretary, Shabana Mahmood. Mahmood had already been working on a plan to reduce the number of police forces and consolidate some of their functions. One person with knowledge of her thinking said she is generally skeptical of how well devolution can work in practice, though another said she is not ideologically against it. (The Home Office declined to comment on these specifics.)

There could be tension too with the Treasury, whose responsibility for local economic growth has already been handed to No. 10 North. Clark — who negotiated early city deals alongside Miatta Fahnbulleh, a former civil servant who is now a key Burnham ally in his Cabinet — recalled the finance ministry being “hostile” to his “subversive” push for devolution. “There’s a Whitehall preference for tidiness and for everything to be identical,” he added.

Another tricky and expensive decision will be around what to do with England’s private water firms, which have provoked public outcry by paying dividends while presiding over a creaking Victorian infrastructure. Burnham has promised greater “public control” of utilities but stopped short of promising full nationalization, and aides are still working through multiple options, including a mutual form of ownership and whether debt-ridden Thames Water could be split into two entities, one for London and the other for the surrounding region. On many issues, Burnham has identified problems without yet knowing the solutions.

Thus far there are many quiet skeptics of Burnham’s approach but few vocal critics. The skeptics tend to focus on two separate dilemmas: how do you meaningfully move money out of Whitehall and meet demands to raise spending on healthcare and defense? And after all the devolution promises that came before it, will No. 10 North prompt meaningful change?

One senior trade union figure said devolution in itself — which ties up the government in machinery changes and takes years to have an impact — does not “float the boat” of voters who are more concerned about the cost of living now. They voiced concern that the varying quality of leadership in each area could reinforce inequality, which would be ironic for a PM promising “good growth in every postcode.” Some MPs are already nervous that Burnham is running his devolution agenda from Manchester — a prospering city that has little in common with left-behind towns, or communities in England’s rural south west.

Then there is the existential question hanging over Burnham’s Labour — can empowering left-behind communities persuade voters to desert opposition parties, including Nigel Farage’s right-wing populist Reform UK or the hard-right Restore Britain?

“This is the last bulwark against a fucking Farage-led government,” said one former Conservative government official. “I suspect it will be somewhat of a gimmick. But if it’s a gimmick that people respond to and vote for, is it all that bad?”

Some believe Burnham’s relentless focus on England’s individual regions misses the wider picture. “England as a constitutional and political entity does not figure,” said Jonathan Rutherford, who co-founded the socially conservative Blue Labour movement in the party. “And yet England is the place where the populist revolt is strongest. It’s where it originated. It was the strength behind the Brexit vote. It’s the source of the strongest form of nationalism — English, which is expressed through Reform and Restore.”

Others in Burnham’s own party worry that his plan could be too effective. After a series of strong electoral performances nationwide, Reform now controls many local councils, using its limited powers to scrap climate schemes, take down Pride flags and declare war on financial waste. A Labour government in London returning more authority to those councils would end up just empowering the opposition.

“I do worry about it,” said the senior Labour figure in a mayoral body quoted earlier in this story. They pointed out that mayors will soon have more say over police budgets and priorities. “You are putting quite a lot of power in the hands of people who could be quite malign in their intentions,” the senior Labour figure said.

Opposition parties sense an opportunity from Burnham’s extra funding; Ben Houchen, the Conservative mayor of Tees Valley in the north east, wants to hand money back to voters as a rebate. Burnham shut down the idea but Houchen told POLITICO Magazine he has spoken to Treasury officials and believes it will be possible, unless the government specifically blocks it. Simpson did not completely rule out such rebates, saying: “There’s going to be no ability to sit outside of the tax framework at a local level. That’s not what fiscal devolution is about. But flexibility about how that money is spent in a local area is going to be there.”

None of those concerns are deterring Burnham, whose allies say he can succeed because he will drive the devolution agenda personally from No. 10 North in a way no prime minister has done — and that he genuinely trusts the councils and mayors he’s empowering to serve their areas. “It is already changing things,” said Simpson.

Burnham’s team has met chief executives of mayoral authorities and hosted mayors for a meeting of a revived national economic council, set up by Gordon Brown in response to the 2008 financial crisis. There was potent symbolism in the way Burnham ran the meeting, forcing Cabinet ministers to listen and take note of the mayors rather than the other way round. Those at the table included the prime minister’s business adviser Varun Chandra, who is more used to talking to U.S. trade negotiators than regional leaders.

The prime minister told mayors he wanted to meet every two weeks.

‘It’s like Fort Knox in there’

Burnham has spent the last two weeks on a tour of the country he now leads, focusing on areas where Labour has fallen behind — a trial run for a general election the PM must call no later than 2029 to earn his own mandate for governing. It stands to be a five-way contest for power, pitting Labour against Reform and the Conservatives, Greens and Liberal Democrats, alongside Restore.

Almost no one in the Labour Party believes Burnham will be able to repeat the 172-seat majority that Starmer won at the last general election in 2024, leaving him a narrow window to do something radical while he commands the sway of parliament.

Burnham is already trying to connect his technical reforms to real change on the ground. The PM crisscrossed England this week with stops at the Wolverhampton Bus Terminal, where he announced the local mayoral authority would take control of the bus network, and to a homelessness charity in Newcastle where he asked local leaders to help his pledge to end rough sleeping. Newspaper front pages this summer have splashed repeatedly on a long-running plan to release some prisoners early because England’s Victorian jails don’t have enough room; one interview this week was dominated by questions about messages that Burnham traded with a person impersonating White House chief of staff Susie Wiles.

All those issues are already crowding out his focus on reengineering the machinery of government. “I wish people might just engage with the seriousness of the proposition,” Burnham told The Times this week.

The vibes in Burnham’s inner circle remain good. “I’m not saying there aren’t going to be difficulties, but sometimes you’ve just got to get up and do it,” said one current government minister. “That was part of the problem under [Starmer’s] administration. There were always roadblocks; there was always a reason not to do something.”

And if Burnham is seeking to show he is among his people, the building itself does some of the work for him. Unlike Downing Street, imposing and behind iron security gates since 1989, Heron House sits on top of ordinary life in the city.

It faces a busy public square above a Slug & Lettuce chain cocktail bar, a branch of the ubiquitous pie store Greggs and trendy cafes serving Vietnamese drip coffee and matcha from Kyoto. Shoppers sit on a bench next opposite the low metal barriers and police guards on the door. The Ferris wheel at the square’s Christmas market is so tall that last year riders could see down onto the six-storey building’s roof. The local marriage registration office is on the ground floor. “You don’t really notice it,” shrugged a groom, Max Harris-Green, while his bride posed for photos a few meters from the new heart of government.

Put simply, it looks boring. The entrance goes unnoticed by many of those walking past, save for the occasional passer-by taking a selfie by the door.

Getting into the building itself is harder than Downing Street, whose custodians swing open the black front door for guests who have cleared the perimeter. Visitors to No. 10 North go through one of several discreet entrances — one of them next to a Chinese restaurant favored by the former Manchester United footballer Wayne Rooney — and successive doors. A Labour official said: “It’s like Fort Knox in there.” (No. 10 declined to give POLITICO Magazine a tour.)

Recent visitors speak of elevators with unmarked buttons, a bombproof room and special doors for agents who still work on other floors. Nearby during the lunch rush, one man in a shirt was overheard joking to three others: “Is this going on the MI6 credit card?”

But the success or failure of Burnham’s power shift will rest not on the building but the prime minister himself. Ironically for a man preparing to give up authority, Burnham will have to wield it firmly from the center to make his plan work. That even extends to where he sits.

No. 10 North will mean nothing without Burnham being there in person, said the official with knowledge of the process quoted earlier: “In the civil service, power always gravitates to the most senior people. You need the senior decision-making people there in person.” Former Chancellor Rachel Reeves was criticized for spending only five days working from the Treasury’s Darlington campus in almost two years after Labour took power. (Treasury officials insist she visited other places nearby.)

Burnham’s pledge to work from Manchester each week “can’t slip,” said one senior Labour aide, even as he faces more demands to travel abroad. “The whole center of power has to move there at the end of the week.”

Esther Webber contributed reporting from London.

  •  

Burnham will divert ‘significant’ resources out of civil service, says No. 10 North chief

LONDON — Andy Burnham will divert “significant” resources out of Britain’s civil service in order to funnel officials into councils and mayoral bodies in England, the official leading the U.K. prime minister’s devolution unit has indicated to POLITICO.

Caroline Simpson, Burnham’s deputy chief of staff in “No. 10 North,” the Manchester outpost that he opened last month, said the office will draw up plans in the coming months to “transfer” civil service resources into mayoral authorities as they are handed more power.

Speaking to POLITICO Magazine for a major profile of Burnham’s project in her first interview since taking the role, Simpson said England remains “one of the most centralized countries in the Western Hemisphere. We have very little true devolution.”

Burnham’s Cabinet signed a statement last month which said No. 10 North would oversee a “major transfer of powers, resources and functions” from central to local government before the next general election, due by 2029. It promised to “build new career paths between central government and the wider public sector,” make the civil service “smaller and more strategic” and “release savings” to transfer resources to local areas.

Britain’s civil service has ballooned by 100,000 people in six years to around 550,000 following the Covid-19 pandemic and the U.K.’s exit from the European Union.

Simpson declined to answer to what extent the overall headcount of civil servants will be cut to increase staffing in regional government. “I am not going to put a figure on what that is going to look like,” she said.

However, she added: “The intent behind [the Cabinet paper] — really moving significant resource from Whitehall and from the civil service into regions, into local areas — is absolutely part of our plan, our ambition, our mission here in No. 10 North.”

After this interview was published on Friday, No. 10 officials emphasized that neither Simpson nor Burnham had explicitly said that his plan would involve cutting civil service headcount. However, No. 10 has not ruled out cutting civil service headcount either.

Burnham has said he wants all areas of England to have mayoral authorities in place by the end of 2028, and they are set to be offered the expertise of Whitehall officials where it is relevant and desired.

It is not yet clear how this movement of staff will work in practice. Officials plan to outline more detail in a paper alongside the Oct. 26 budget, which — as with a spending review in 2027 — will make clear the impact on Whitehall budgets.

Downing Street also announced a pilot scheme on Friday in which 18 mayoral authorities will receive five to 10 civil servants each on secondment, who will remain on civil service contracts. 

Simpson said: “We’re going to develop that plan with the mayoral authorities over the coming weeks and months. It is going to be something that evolves, because the pace of devolution has happened quicker in some areas than others.”

Elsewhere, Simpson appeared to leave the door open to the possibility of councils using incoming economic freedoms to pay “rebates” directly to residents.

The idea from Ben Houchen, the Conservative Tees Valley mayor, prompted a rebuke from Burnham, who said a mayor could not be a “mini-chancellor of the exchequer.” However, Houchen told POLITICO this week that he had discussed the idea with Treasury officials since Burnham made his comments and believes it will be possible unless the government directly outlaws it.

Ben Houchen, speaks to delegates during The Great North Investment Summit at the Royal Armouries Museum on May 11, 2026 in Leeds. | Ian Forsyth/Getty Images

Simpson said: “The PM is absolutely right — there’s going to be no ability to sit outside of the tax framework at a local level. That’s not what fiscal devolution is about. But flexibility about how that money is spent in a local area is going to be there … the absolutely technical ‘what does that flexibility look like?’ is going to have to be worked through.”

Asked if that flexibility could include handing money back to residents if local leaders decide it, she replied: “We are working through some of those practicalities at the moment.”

Simpson — who Burnham poached from her job as chief executive of the Greater Manchester Combined Authority, where he was mayor for nine years — spent more than two decades as a nonpartisan public servant before taking her first political role as his deputy chief of staff.

She said becoming a political staffer was a “change” for her personally, but said she and the prime minister had decided it was necessary. “I’m really enjoying it,” she said. “It brings an ability to be even more directive and … get things done that I think is absolutely needed with the pace of change that the PM wants.

“The best way to deliver that, I felt and he felt, was to move into a deputy chief of staff role.”

Simpson said Burnham had never discussed the idea of No. 10 North with her as mayor. Recalling her appointment, she added: “It all happened very, very quickly.”

No. 10 North now has around 50 civil servants, said two people with knowledge of the planning, both of whom were granted anonymity to speak frankly. Several are still living out of hotels in Manchester and returning to London or elsewhere on the weekends. The office is expected to expand to up to 150 civil servants.

The office is based out of Heron House, a refurbished 1980s office block in Manchester city center, on a floor previously prepared for the cyber intelligence agency GCHQ. However, this is only a temporary base.

Burnham previously said he wanted to base the office at the Manchester Digital Campus in the city, but this will only be fully open in 2032. No. 10 North is unlikely to stay based at Heron House that long, said one of the two people with knowledge of the planning, so it will be looking for another base in the next few years.

Despite skepticism from some in Whitehall that the devolution project will be successful, Simpson, who is running the office day-to-day alongside its civil service Director General Sam Lister, said No. 10 North was “absolutely not” a gimmick.

“What we’re bringing is a different type of energy,” she added. “It’s not better. It’s not worse. It’s just different. That’s really the point about No. 10 North — to connect our places, connect devolution back into the heart of governing.”

Unlike 10 Downing Street, where Larry can come and go as he pleases, the high-security building in Manchester does not have a cat.

Instead it has the next best thing — a cutout image of Downing Street’s real-life chief mouser. “We’ve got a cardboard cat, which isn’t quite living up to Larry,” Simpson said.

This story was updated on Aug. 21 to add further briefing from No. 10 officials about Burnham’s plans for the civil service.

  •  

Russian overnight strikes kill at least 13 in Ukraine

Russia unleashed a barrage of missiles and drones across Ukraine early Thursday, killing at least 13 people and wounding dozens more.

Ukrainian President Volodymyr Zelenskyy said the hours-long attack struck Kyiv and the surrounding region as well as Odesa and Chernihiv, damaging apartment buildings, a children’s hospital and a school in the capital. Twelve people were killed in Kyiv and another in the surrounding region, he said, with around 40 injured.

“Unfortunately, while Moscow is investing in ballistic missiles and escalation, such strikes do not always receive the response they should from the world,” Zelenskyy wrote on X. “As long as Ukraine does not have enough anti-ballistic defense, Russia will not consider peace seriously.” U.S.-made Patriot interceptors “cannot yet be replaced,” he added.

Russia’s defense ministry said it used air-, land- and sea-launched weapons to strike military facilities and warehouses. Moscow also claimed its forces had shot down 726 Ukrainian drones.

Kyiv Mayor Vitali Klitschko declared Aug. 21 a day of mourning “in memory of the victims of the enemy’s massive attack on the capital.” Flags will be lowered and entertainment events banned as emergency crews continue working across three districts of Kyiv.

The barrage also put neighboring NATO countries on alert.

Romania’s defense ministry announced that a drone “entered Romanian national airspace” at 3:21 a.m. before crashing minutes later near Grindu “in an uninhabited area.” No casualties or damage were reported.

Poland meanwhile scrambled military aircraft as Russian strikes continued in neighboring Ukraine. The Polish military said it had activated available forces and assets, while ground-based air-defense and radar systems were put “in a state of readiness.”

  •  

The Lib Dem dilemma: Cozy up to Burnham or strike out alone?

LONDON — Britain’s Liberal Democrats are holding fire against Andy Burnham — for now.

The centrist party has studiously avoided criticizing the new Labour prime minister during his first weeks in power, instead pushing the same “constructive opposition” approach followed during predecessor Keir Starmer’s early stint in Downing Street.

“I like what he’s doing,” says 2024-intake Lib Dem MP Martin Wrigley. “I like the way he’s going, focusing on things that matter.” The question is: how long can it last?

A person familiar with Lib Dem Leader Ed Davey’s thinking, granted anonymity because their job does not authorize them to speak publicly, says the party hopes Burnham removes the “performative hostility” from Westminster.

“That style of politics really suits the populist parties, both on the left and the right, and it isn’t the sort of politics that we as Liberal Democrats want to do,” they argued.

But while not rocking the boat has landed well with Lib Dem MPs, there is still a call for a distinctive identity for the party in a highly competitive political environment, with Labour enjoying a “Burnham bounce” in the opinion polls on the left, and Tory Leader Kemi Badenoch’s personal brand on the up.

Duty of care

Davey — whose party enjoyed its best-ever result at the 2024 election but remains only just in double digits in national polls — has already made one big play in the Burnham era: being helpful on reforming social care.

The creaking social care system in England is a policy challenge governments of all stripes have failed to meet — leaving families with drained finances and cash-strapped local authorities plugging the gaps.

The Lib Dem leader, who cares for his disabled son, attended a virtual cross-party meeting after Burnham, whose own father is in a care home with Alzheimer’s, called for an open conversation on a fix.

This proactive approach has so far landed well with Davey’s troops. “I don’t think we’re going to sink the process if we don’t get everything we want,” says Lib Dem Shadow Commons Leader Bobby Dean. “If we can get cross-party consensus on one element, then we should get on with that element straight away.” 

Indeed, Mike Storey, the Lib Dems’ co-deputy leader in the House of Lords, says the party will “cooperate fully on social care … and we’ll do it with no strings attached.” 

Andy Burnham speaks to the media at HM Naval Base in Portsmouth, England on July 27, 2026. | Pool photo by Aaron Crown via WPA/Getty Images

The person familiar with Davey’s thinking laid out the approach, saying “People are put off” by opposition parties that “decide to just immediately say ‘oh, they’re terrible. They’re breaking everything again’” when a new government arrives.

Tom Lubbock, co-founder of polling agency J.L. Partners, agrees a conciliatory approach makes sense for now as “you just look a bit mad if you just go in studs-up within the first couple of months.”

But there’s some angst about making sure the Lib Dems clearly separate themselves from Labour.

Party of the countryside 

It’s not the first time the Lib Dems have tried to play nice with a Labour prime minister.

But Davey’s party soon found ways to differentiate themselves from the increasingly unpopular Keir Starmer.

After Starmer’s government changed inheritance tax rules for farmers, the Lib Dems spied an opening — dubbing it the “family farm tax” and ramping up campaigning.

The party has an “extraordinary niche and an extraordinary opportunity” to pose as the “Countryside Alliance arm of the Labour Party,” argues Lubbock — in other words, a progressive rival to Labour that rural voters can still get behind.

Burnham’s focus on reviving urban areas may lend itself to this approach, with Lib Dem figures poised to exploit any perception “Avanti Andy” is shuttling between London and Manchester, another major city.

Adam Dance, who represents the rural constituency of Yeovil, warns Burnham “can’t be a prime minister just for Manchester and the biggest cities” and says “he needs to understand rural areas.” 

Northern MP Tom Gordon also challenges the prime minister’s claim to represent northern England, arguing this “does feel slightly performative.” He reckons voters “don’t hate him [Burnham] yet” as “he’s not had long enough to make any really unpopular decisions.”

Left vs. right blocs 

Much of the Lib Dems’ success under Davey has come from wooing disillusioned Conservatives, targeting Tory-held seats in the home counties — dubbed the “blue wall.”

But winning remaining Tory areas next time round could be harder if the Lib Dems appear too closely aligned with a Labour government. 

YouGov data last month put Kemi Badenoch’s net favorability score at the highest of any Conservative leader for more than five years. | Leon Neal/Getty Images

Lubbock argues the Lib Dems will do “much worse” if supporters of Nigel Farage’s Reform UK “get on the Conservative bandwagon” to help defeat Labour nationally. That would be a mirror of the way some Labour supporters tactically backed the Lib Dems in 2024 to oust the Tories.

Though the Tories are still stuck below 20 percent in most polls, there are signs of recovery. YouGov data last month put Badenoch’s net favorability score at the highest of any Conservative leader for more than five years. Her position is undeniably more stable than it was 12 months ago.

While Lib Dems are optimistic Badenoch’s moves to the right on net zero and human rights will push more One Nation, centrist Conservatives in their direction, their Tory rivals sound bullish.

Tory MP Gregory Stafford, who saw off a challenge by the Lib Dems to win Farnham and Bordon two years ago, doesn’t think there are more Tories left for the Lib Dems to poach.

“All I’m seeing is those people coming back, not the other way round,” says Stafford about voters who bid the Tories farewell in 2024. Despite his narrow win, he thinks some of the 6,000 Reform UK voters in his seat will return — thanks to Badenoch.

“They see demonstrably in Kemi a leader that both they like as a person, but also speaks their language and speaks to the policies that they’re concerned about,” he argues.

As such, the Lib Dems may settle for a stronger attack against the right.

“People just don’t feel listened to,” says the party’s Scotland spokesperson Susan Murray. “When they don’t feel listened to, they are open to populism.” She argues that both the Lib Dems and Labour are “not succeeding in getting that message [of hope and opportunities] across.” Dean adds, “There’s a massive demand out there for a liberal party to make a bold offer to the country and at the moment that space feels vacated.” 

It’s a perceived weakness Stafford, the Conservative MP, plans to leap on at the next election. “The real danger for the Liberal Democrats is that they are seen as a patsy party that might champion local issues locally, but actually have nothing to say distinctive on the national stage,” he argues.

Roz Savage, who entered the Commons for the Lib Dems in 2024, recognizes the outfit has a “PR challenge that people think of us as the nice party.” Instead, a “bigger story” is required about a future Lib Dem government, she says.

“When we talk to Lib Dem voters in focus groups, they don’t really have a clear vision for what the Lib Dem party should stand for,” says Merlin Strategy’s Head of Research, Julian Gallie. People often back them as a vote against other parties, the political analyst says.

MPs also want the Lib Dems to reach beyond their traditional strongholds and target historically Labour areas — including Newcastle and Hull. Both have Lib Dem-run city councils, but are the kind of areas in which Burnham will fancy he can improve Labour’s standing. Meral Hussein-Ece, the Lib Dems’ Lords equality spokesperson, says the party must also do more to understand “the diversity of this country, which I don’t think we’ve done very well so far.” 

Lib Dem conference in Brighton next month will give the party a chance to lay a marker for the expected general election in 2029. But MPs want more than set-piece events to present a distinctive vision. 

“We do have to do better at utilizing the likes of social media and capturing the attention all the time, not just when we get the spotlight shined on us,” argues Gordon, the Harrogate and Knaresborough MP.

The Lib Dems, he says, have to drive “conversation on our own terms, rather than always having to just respond.” 

  •  
❌