UK government plans expanded Downing Street control over spending decisions

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UK govt expands Downing St. control

Highlights

Plans for restructuring No 10 would give the prime minister greater oversight of public spending, reducing dependence on the Treasury while maintaining overall spending limits.
Burnham's initial policy moves include cancelling Starmer's digital ID scheme to save £600 million annually, establishing a cabinet-level minister for artificial intelligence, and increasing public control over Thames Water.
Shabana Mahmood is expected to be appointed chancellor to prevent the Treasury from becoming a rival power base, as Burnham centralises economic strategy in Downing Street.

Downing Street overhaul and first policy moves

As reported by Financial Times, Burnham has held discussions on a significant restructuring of No 10 to give the prime minister more direct oversight of public spending and policy delivery, according to four people with knowledge of the plan. The proposed model would give Downing Street a bigger economic and financial team, allowing it to monitor performance and spending decisions more independently of the Treasury while overall spending limits remain with the finance ministry.

People familiar with the plans say the changes are designed to make No 10 more activist in the economic sphere and less dependent on what allies describe as an "imperial" Treasury. The first 100 days planning includes proposals for an "Office of the Prime Minister" or a "Downing Street Department", drawing in part on the White House Office of Management and Budget as an institutional reference point.

Burnham is also expected to move quickly on early policy decisions after replacing Sir Keir Starmer. Those steps are set to include cancelling Starmer's digital ID scheme, a move presented as saving 600 million pounds a year, creating a cabinet-level minister for artificial intelligence, increasing public control over Thames Water and backing more North Sea drilling without lifting Labour's moratorium on new exploration licences.

Power balance, devolution and political implications

One person briefed on the plan says a stronger No 10 would also improve co-ordination with metro mayors as the government pushes ahead with wider devolution. Burnham has already outlined a No 10 North focused on regeneration, re-industrialisation and public control of essential services, and some of the added oversight is expected to be exercised from that northern base.

Personnel decisions are also shaping the planned balance of power at the centre of government. Burnham is expected to appoint Shabana Mahmood as chancellor after rejecting Ed Miliband for the role amid concern that the Treasury could otherwise emerge as a rival power base.

Supporters of the changes argue that the current structure leaves Downing Street too weak to drive domestic policy. Louise Haigh, a Burnham ally likely to take a co-ordinating role as chancellor of the Duchy of Lancaster, has said Number 10 is "criminally underpowered", while Hannah White, chief executive of the Institute for Government, says a stronger prime ministerial department matching the Treasury's influence would help Burnham deliver his agenda.

In his first Downing Street address, Burnham is expected to set out priorities for restoring confidence in government and acknowledge the rapid turnover of prime ministers in British politics. The transition follows Starmer's final message on Sunday night, in which he says he is leaving the country in a better state than when he took office.

In our earlier article on Andy Burnham’s plan to scrap the UK’s digital ID programme, we reported that the move was framed as an immediate policy reset to redirect money and administrative effort toward cost-of-living priorities. We also noted the wider early-agenda signals around energy and utilities, including maintaining limits on new North Sea licences while honouring existing ones and keeping options open to place Thames Water into special measures.

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