|

United Kingdom: Devolution vision and economic trade-offs – Standard Chartered

Standard Chartered Bank’s Chief Economist for Europe and UK, Christopher Graham, reviews Andy Burnham’s plan to make devolution a central pillar of his premiership. The report highlights the UK’s unusually centralised structure versus OECD peers, outlines potential gains from shifting power to local institutions, and stresses that benefits and costs depend on pace, design and institutional strength of devolution.

Burnham’s Manchesterism and UK centralisation

"Andy Burnham has signalled that as prime minister he would make devolution a key pillar of his vision for reforming the British state."

"Burnham’s tenure as mayor of Greater Manchester since 2017 – during which the city-region’s growth has been twice that of the UK – has shaped his political vision, ‘Manchesterism’, a form of economic devolution that shifts power from Westminster to local institutions to drive more inclusive, place-based growth that helps reduce regional inequalities."

"Devolution could serve Burnham well by offering the Labour Party an overarching economic vision that was often lacking under Starmer and could command some degree of cross-party support."

"The UK is also one of the most centralised advanced economies, according to OECD data, and separate studies have pointed to particularly large disparities in economic performance and productivity relative to its peers."

"The academic consensus on whether devolution delivers economic benefits is mixed, however, as is the evidence of the UK’s modern devolution agenda since 1999."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

More from FXStreet Insights Team
Share:

Editor's Picks

GBP/USD stays weak near 1.3250 on resurgent USD demand

GBP/USD stays weak near 1.3250 in European trading on Tuesday, reversing a part of the previous day's advance to a one-week high. The pair ditches a three-day winning streak, undermined by the USD/JPY upsurge-led broad US Dollar rebound. US jobs data in next in focus.

EUR/USD keeps the red near 1.1400 on firmer US Dollar

EUR/USD remains in the red near 1.1400 in early Europe on Tuesday, snapping a three-day winning streak amid a firmer US Dollar. The pair trades with caution ahead of Germany's preliminary inflation readings and the US JOLTS Job Openings Survey.

Gold recovers early lost ground to YTD low; Fed hike bets and firmer USD to cap upside

Gold builds on its intraday recovery from the lowest level since November 2025, touched earlier this Tuesday, and climbs to the top end of its daily range heading into the European session. Any meaningful appreciation still seems elusive in the wake of a broadly firmer US Dollar. Against the backdrop of renewed Mideast tensions, mixed signals on US-Iran talks assist the USD to stall its recent pullback from the highest level since May 2025.

Ripple defends critical support, Stellar extends recovery

Ripple (XRP) trades around the key $1.00 psychological level, consolidating as the token awaits its next directional catalyst. Stellar (XLM) extends its recovery above $0.178 after posting modest gains at the start of this week.

US JOLTS Job Openings expected to show strong labor demand, endorsing Fed rate hike bets

The US Bureau of Labor Statistics will release the Job Openings and Labor Turnover Survey for May on Tuesday at 14:00 GMT. Job openings are expected to come in at 7.3 million in May.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.