Lord O’Neill Criticises Burnham’s ‘Growth in Every Postcode’ Promise as ‘Slight Lunacy’

Lord Jim O’Neill, a former Treasury minister and economic adviser to Prime Minister Andy Burnham, has criticised the government’s pledge to deliver economic growth in every postcode across the United Kingdom, describing the ambition as “slight lunacy”.

Speaking to Sky News presenter Beth Rigby, O’Neill argued that the government should concentrate investment on the country’s largest cities and established economic centres rather than attempt to stimulate growth equally in every area.

O’Neill said some areas that could benefit from Burnham’s policies lacked the capacity to deliver the expected results. He argued that focusing resources on major cities would provide a more realistic route to boosting national economic growth.

London, in particular, should remain a priority, according to O’Neill, who highlighted the capital’s significant contribution to the UK economy. He also pointed to major urban centres in the North of England, including Manchester, Liverpool, Leeds and Sheffield, as important locations for investment.

The criticism comes as Burnham prepares to set out the government’s first Budget, with economic growth and regional development expected to feature prominently. The Prime Minister has championed the idea of spreading economic opportunities across the country and giving local leaders greater control over decisions affecting their communities.

However, O’Neill warned that trying to deliver direct economic improvements in every postcode could waste taxpayers’ money if local authorities lacked the resources or expertise to manage investment effectively. He suggested that reducing government borrowing costs could offer a more effective way to support households and stimulate growth, partly through lower mortgage rates.

His comments highlight a key challenge facing the government: balancing investment in economically powerful cities with its promise to help communities that have historically received less funding and fewer opportunities. The debate is expected to continue as the government prepares its Budget and considers how best to distribute resources while improving productivity and economic performance across the UK.