Prime Minister Andy Burnham used his first Commons appearance to blame Brexit and the legacy of Margaret Thatcher for the UK's decade of low growth, arguing that the country must be "brutally honest" about its "series of wrong turns" over the past 40 years. Speaking roughly six weeks after taking office, Burnham told MPs he aimed to build a new sense of optimism so that "we can make this next decade better than the last."
The British public wanted "much more substantial change" on major national issues, he said. "That is what I will bring. Britain is not where any of us would wish it to be. Things are not working as they should." Economists' analysis of internal Bank of England data on thousands of British companies since the referendum a decade ago indicates the UK economy has taken a 6% hit from Brexit's effects.
Three key priorities and taskforces
Burnham's first Commons appearance coincided with his predecessor Keir Starmer's announcement that he would stand down as an MP to focus on international affairs, triggering a byelection in a London seat where the Greens are expected to challenge. The cabinet was told on Tuesday that the government will prioritise cutting costs of essentials like childcare and mortgages, regenerating communities, and increasing public control of water, housing, and energy.
Burnham's deputy, Louise Haigh, will lead taskforces on each issue, with the prime minister instructing ministers to be "relentless" in pursuing these priorities. In his statement, Burnham hinted at committing to spend 3% of GDP on defence by 2030, saying he appointed John Healey as chancellor "precisely because" of his stance on military spending. He also opened the door to electoral reform in Labour's next manifesto, stating, "I do believe there needs to be a mandate to make that change. There are different views in this house, but I believe we will need to get a consensus at the next election."
Brexit and Thatcher blamed for decline
Burnham, whose Makerfield constituency voted for Brexit, suggested the Brexit vote was a response to "a series of wrong turns" since the 1980s, compounded by leaving the EU. He said, "Political power was centralised, economic power privatised, the country de-industrialised. Austerity followed, hollowing out councils and depriving them of the agency to act to reverse any of this. And then Brexit compounded the damage, ushering in a decade of low growth and stalled regeneration."
He added: "Change begins with honesty … Unless we are blunt about what went wrong, we won't turn things around. Far from taking back control, the combination of these policies took control out of the hands of communities up and down Britain for 40 years. Too many places have been drifting." Burnham also announced he would attend the Cop31 climate summit in Turkey and continue pursuing green energy, but would be "pragmatic" on supply, amid expectations he will approve the Jackdaw gas field, saying, "The mistake is saying it's got to be one or the other for political purposes. The truth is, it's going to have to be both."
Conservative response and Starmer's departure
Tory leader Kemi Badenoch accused Burnham of "living in the past" over his attacks on Thatcher, who was in power from 1979 to 1990. "The year is 2026 but the prime minister said everything has gone wrong since the 1980s, still complaining about Margaret Thatcher. He is talking about a woman who became prime minister before I was born. He is living in the past and he wants to take us back to the 1970s."
Burnham paid tribute to Starmer, saying he had created a platform for Britain to be fixed, "and we will use it well." Starmer announced he would stand down as MP for Holborn and St Pancras, despite saying in July he planned to stay until the next election. "It has been a huge honour and privilege to represent the best constituency in the country," he said. "I will now focus on other things and that will be international affairs, including defence, security, trade and technology in a fast-changing world."
Taskforce details and regeneration plans
Burnham's first taskforce will tackle "everyday rip-offs" like parking charges, subscription traps, and cowboy builders, as well as long-term pressures like mortgages, food costs, and childcare. The second will assess the state taking over failing essential services, with Burnham believing greater state control is the surest way to economic growth. Government sources said Haigh wanted to explore state control in areas like energy and housing if it would bring down costs.
The third taskforce will explore ideas to revive high streets and impoverished districts, including legislative options on houses in multiple occupation and devolving powers to mayors and councils. Burnham is keen to replicate Stockport's regeneration, which saw billions in investment in housing and event spaces. Haigh will also examine revisiting the Total Place pilots from Gordon Brown's government, which mapped public spending to cut waste and serve communities effectively.
