Rachel Reeves has fired a warning shot at Greater Manchester Mayor Andy Burnham, telling him to ‘stick to my plan’ in a stark defence of her economic recovery blueprint. The Chancellor’s blunt directive came during a tense exchange at a private meeting on Tuesday, sources confirm. Reeves, visibly frustrated, dismissed Burnham’s calls for devolved fiscal powers as a distraction from the government’s national strategy.
The showdown underscores a growing rift between Whitehall and regional leaders over the pace of recovery. Burnham, backed by other metro mayors, had argued for more local control over infrastructure spending and business rates. But Reeves shot back: ‘We have a plan. Stick to it.’
Uncovered documents from the Treasury show Reeves is doubling down on austerity-lite measures, prioritising deficit reduction over stimulus. Critics say this risks choking off growth in the North. But Reeves’ allies insist the plan is working: GDP figures released last month show a 0.3% uptick, though wages remain stagnant.
Burnham’s office declined to comment, but sources close to him say he feels ‘sidelined’ by Reeves’ centralising stance. The clash comes as the government faces mounting pressure to deliver on its levelling up agenda, a promise that has so far yielded little for regions outside London.
Reeves’ message is clear: her plan is the only game in town. But with unemployment ticking up and business confidence wobbling, the question is whether ‘sticking to the plan’ is enough.
