Andy Burnham, the UK’s new Prime Minister, has promised to revive the nation’s economic fortunes through ‘good growth in every postcode’. He is a big supporter of devolution and giving more power and responsibility to regions to decide what happens in their areas.
But he follows a succession of PMs who have pledged similar initiatives.
At the British Chambers of Commerce (BCC), devolution isn’t just another political buzzword or passing fad; it is the place-based structure on which the entire network was established, in 1860.
That’s when a group of business leaders from 16 Chambers first came together and recognised that, while their individual organisations were successful, they could achieve far more collectively.
They were able to provide a strong voice to improve economic conditions by fighting for what worked in their communities up and down the country.
The arrival of Andy Burnham has solidified devolution as a future policy driver across all areas of the UK, especially in England. But to ensure it delivers growth in every postcode, there are seven core principles which must be adopted.
- Devolution for growth and prosperity, not for its own sake
The transfer of power from Whitehall to nations and regions must be clearly tied to delivering economic growth and prosperity – not political expediency. Devolution must be a mechanism to drive inclusive economic growth.
- Business at the heart of local decision making
Local businesses must be active partners in shaping devolved strategies. If regions are to prosper, then businesses must have a strong voice in decisions. Organisations which represent business communities, like Chambers of Commerce, must be formally included in governance structures.
For example, Local Growth Plans and Mayoral Councils, should have a seat for businesses to reflect their views on policy and investment decisions. This is already happening in some areas across the Chamber network, including Greater Manchester, Birmingham and the North East. But there must be a consistent approach across the UK.
- SME procurement in local government
Local government procurement frameworks should prioritise SMEs in their areas when it comes to accessing public sector contract supply chains. The BCC’s SME Procurement Tracker, in partnership with Tussell, shows that only 21% of direct public sector spend was with SMEs, in 2025. Soundings from the new government on this has been encouraging, but it now needs to deliver it.
- Long-term investment and funding certainty
The introduction of Integrated Settlements and long-term investment funds is a positive step. There is a need for predictable, multi-year funding that is aligned with local growth priorities. This includes infrastructure, digital connectivity, and workforce development through Local Skills Improvement Plans (LSIPs).
- Growth funding for business growth activities
Too many councils use funds intended for economic development to plug holes in their services budgets. Greater devolution of spending will only deliver if money granted for local growth is spent on that purpose. There must be transparency on devolved spending, so businesses, residents and other taxpayers know how resources are being used. This would help ensure additional pressures are not placed on underfunded Local Authorities.
- National coherence with local autonomy
Local autonomy is the driving force in devolution but there must still be national consistency in areas such as regulation, trade, immigration and major infrastructure development.
Devolution must not fragment the UK’s internal market or create new barriers for business. A balance is required. Lessons should be learnt from the implementation of devolution across the four nations of the UK – including a review of where further work is needed.
- The right conditions in the right areas
True and workable devolution means setting the right conditions in the right areas, across every postcode, for businesses to start, grow and thrive.
We are actively involved in supporting export-led growth through the Chamber Network; working with local government as a genuine partner to ensure the local business environment enables private sector investment; and shapingshaping local skills delivery through Local Skills Improvement Plans so that it supports genuine productivity growth.
The Chamber Network stands ready to work with local Government to turbocharge growth in all postcodes.