Andy Burnham shakes up Whitehall with new government department | Politics

Andy Burnham has created a powerful new department, taking on parts of the Cabinet Office, the Treasury and the Department of Housing, in a bid to become “the most important driver of the UK economy”.

In one of his first acts, Burnham established the Office of the Prime Minister and Cabinet, headed by his ally and enforcer Louise Haigh; This office will oversee the No 10 operation in London, the upcoming No 10 North operation in Manchester and parts of the Cabinet Office.

It is also sending local growth and devolution teams from the Treasury and the Department of Housing, Communities and Local Government to No 10 North.

In a statement about the dissolution of the Cabinet Office and other Whitehall changes, the government said: “This will ensure that local economic growth policy and regional empowerment are no longer isolated from each other, ensuring No 10 North becomes the dominant driver of the UK economy.”

Other parts of the Cabinet Office will move to a new agency called OneGov, which is controlled by cabinet secretary Antonia Romeo and will mainly carry out government HR functions such as pensions, recruitment and vetting.

Some other parts of the Cabinet Office will be transferred to other departments and the equalities office will be moved to the housing ministry; digital identity moves to the Department for Culture, Media and Sport; from the public sector fraud authority to the Department for Work and Pensions; and the investment security unit is under the Ministry of Business, Innovation, Science and Trade.

As part of the changes, the government will also begin offering relocation packages to officers wishing to move north for the upcoming No 10 operation. Whitehall sources said there would need to be generous incentives to persuade people with existing local growth jobs in London to move to Manchester if Burnham is to get its new structure off the ground quickly.

The revision was announced in a written ministerial statement in the House of Lords, as MPs had already finished their summer break.

Angela Smith, leader of the Lords, said: “Today we are fundamentally restructuring the infrastructure of the state, changing the geography of government to create a stronger, more strategic hub that empowers local leaders and acts as the engine room to drive economic growth across the country.

“To ensure venues are at the heart of government strategy, the Prime Minister is establishing No 10 North as the engine room of devolution and good growth in every postcode across government and the wider economy.”

The changes also include the abolition of the Department of Science, Technology and Innovation; The majority of this department’s functions revert to the business department and culture department where they were before the new structure was created under Rishi Sunak.

But responsibility for AI will go to the new Prime Minister’s Office and Cabinet, with a new advisor to the prime minister on AI. AI minister Kanishka Narayan will be in the cabinet and will sit in this office.