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Sir Sadiq Khan has warned Andy Burnham not to reduce investment in London
PA
But Mr Reed stressed that boosting the North, the Midlands and other regions would benefit the capital.
He told Sky News’ Sunday Morning with Trevor Phillips: “What Andy is saying is that this is one of the biggest economies on the planet, and yet we have some of the poorest regions in Europe in this country, and that is because of the grotesque regional economic inequality we have in this country.
“If we can invest in the infrastructure and support to allow our regions to grow, it actually helps the South East of England.”
Communities Secretary Steve Reed backed spending billions more on infrastructure in the regions
PA Wire
Mr Reed, former leader of Lambeth Council, explained further: “It doesn’t help London if London is the only place where people see opportunities for jobs and economic growth, because people from all over the country come to London.
“It pushes up our housing costs and pushes up housing demand.
“It benefits the South East if the rest of the country does well.”
He also played down the prospects of a general election if as expected Mr Burnham takes over as Prime Minister in mid-July after Sir Keir Starmer’s resignation and embarks on landmark devolution reforms, with tens of thousands of jobs expected to be moved from Whitehall to the regions.
Sir Keir Starmer resigned in the face of a huge Labour revolt
PA
Mr Burnham also faces a difficult decision over who to appoint as Chancellor, with Rachel Reeves widely expected to leave the post.
Net Zero Secretary Ed Miliband is politically close to Mr Burnham, who stormed towards No10 after winning the Makerfield by-election.
Labour Deputy Leader Lucy Powell, Communities Secretary Steve Reed and shadow housing secretary Sir James Cleverly (right), appeared on the BBC’s Sunday with Laura Kuenssberg show
PA
But Labour’s Deputy Leader Lucy Powell, a close ally of Mr Burnham, backed Mr Miliband taking over at the Treasury.
Asked whether she thought he would be good at running the Treasury, she told the BBC’s Sunday With Laura Kuenssberg: “Yes I do actually, but actually I think this is a slightly distracting conversation, because I think we’ve all got a really important job to do.”
