I highlighted that the focus on devolution is not new. From the Royal (Kilbrandon) Commission in the early 1970s, which examined the Constitution, to the London Finance Commission under Johnson, the case for greater devolution has been made repeatedly.

Metro mayors already have devolved powers and budgets covering economic development, transport and skills.

I also noted that Andy Burnham’s policy shift may ultimately be constrained by economic and fiscal reality, financial markets and even Treasury orthodoxy. He has to reconcile two competing forces: Labour MPs who want even higher public spending, and financial markets that demand credible fiscal plans. For now, the end of the Iran war and lower global bond yields have provided some breathing space.

There is a strong case for devolving responsibility for skills, aligning provision with the needs of local labour markets. But there are important challenges. Only two parts of the UK – London and the South East – are net fiscal contributors. The risk is that devolution simply adds another layer of taxation, regulation and administration. Greater openness, transparency and local decision-making are all welcome, but success will depend on how devolution is implemented.

Globally, devolution works best when it is underpinned by fiscal responsibility and competition. That means regions must face the consequences of their decisions – including downside risks, as Detroit’s bankruptcy illustrated – and have incentives to compete with one another to drive growth, innovation and better public services.

Listen below.

Burnham’s plan to change the distribution of power in the UK