Labour reveals plans to split up Treasury and base £250bn transformation fund in the North

Labour would break up the Treasury and base part of it in the North if the party got into power, Shadow Chancellor John McDonnell has said.

Mr McDonnell said Labour would base its planned National Transformation Fund (NTF) in northern England so “better decisions will be made” about how the money is spent.

Labour has promised to create the fund to invest £250 billion on transport, energy systems, communications, scientific research and housing, over 10 years.

On BBC’s Andrew Marr Show, Mr McDonnell said: “What I’m saying is we need to pour money into the North, investment long term on infrastructure, training, rebuilding the economy, but the better way to make decisions is to have them made in that locality, in the region.

Shadow Chancellor John McDonnell talks to Andrew Marr

“So I’m saying let’s split Number 11, take the national transformation fund - where these resources will come from - take those decisions makers and administrators and take them up north.”

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The Shadow Chancellor made the claim in an interview with the Manchester Evening News, which last month joined with The Yorkshire Post and dozens of other northern titles to call for a package of policy measures to turbo-charge the North’s economy.

This Power Up The North collaboration between a number of newspapers and websites from JPI Media, Newsquest and Reach comes exactly one year after the launch of the award-winning One North campaign in the wake of unprecedented chaos on the region’s railways.

Mr McDonnell said his plan wasn’t just about relocating the Treasury unit but “relocating decision-making as well”.