90 MPs: Reindustrialization Fails Without Manchester HQ

More than 90 Labour backbench MPs issued a warning on Sunday that the government’s reindustrialization strategy will fail unless it is managed from Manchester. The group argues that the policy requires a dedicated headquarters to counter bureaucratic inertia and ensure effective planning.

The warning comes as Prime Minister Andy Burnham seeks to fulfill his campaign promise of delivering good growth in every postcode. Chancellor John Healey is scheduled to deliver his first budget this Wednesday. In his speech at the Labour conference last month, Healey pledged to usher in a new age of industrialization, inviting a young apprentice who worked on a new Mersey ferry to the stage.

The MPs’ briefing paper, seen by The Guardian, states that decades of deindustrialization have left the state less knowledgeable about the economy. The group claims the government has lost the capacity to comprehensively plan and is slow to make decisions. They argue that without a clear plan, the country cannot achieve its industrial goals.

The paper proposes a new Reindustrialisation Act to set specific job creation targets and hold ministers accountable. It recommends assigning the oversight of this effort to First Secretary Louise Haigh and basing the operation at No 10 North. This Manchester outpost, established in July, already handles some growth policy responsibilities.

The group also suggests transforming the National Wealth Fund into a Reindustrialisation Development Corporation. This new body would focus primarily on providing capital for rebuilding UK industry. Andy MacNae, the MP for Rossendale and Darwen who chairs the group, said he has no doubt about the commitment of the Prime Minister or the Chancellor.

MacNae criticized the prevailing view within the civil service that growth policy should focus only on cities already performing well. He stated that reindustrialization must deliver jobs to places that need them most. He cited the government’s recent decision to nationalize British Steel as an example of the broad policies required, ranging from procurement to education.

Steve Yemm, MP for Mansfield, noted that while other nations are reindustrializing, many in Whitehall still treat industrial policy as dangerous nostalgia. Lorraine Beavers, MP for Blackpool North and Fleetwood, emphasized that Whitehall does not fix problems unless explicitly instructed to do so. Labour’s industrial strategy, published during Keir Starmer’s tenure, identified eight sectors for growth, including advanced manufacturing, clean energy, and defense.