Andy Burnham set out his economic and political blueprint for Britain in a speech at the People's History Museum in Manchester on Monday, promising "good growth in every postcode" through a significant transfer of power from Whitehall to local communities and a new economic vision. The speech marked the first clear glimpse of how Burnham, widely seen as a likely future prime minister, would govern.
Devolution and Regional Power
Burnham, who serves as the Mayor of Greater Manchester, argued that current devolved powers are inadequate. Britain is the most centralised G7 country for tax and spending policy and among the most economically unequal in the developed world. He proposed a new hub for No 10 in Manchester, with a remit to redistribute power across regions. Rather than local areas applying to Whitehall for powers, sweeping new authorities—including on tax, skills, and industry—would be devolved by default. Burnham also referenced a German-style Basic Law, a statutory right to equal living standards, as mooted in his book Head North.
Reform of Westminster and Whitehall
Burnham criticised the current atmosphere in Westminster as "a more fragmented, disjointed place than the one I left, and, frankly, unhappier." He signalled a departure from Keir Starmer's approach, which saw MPs banned from tabling amendments or voicing public dissent. Burnham promised to empower backbenchers and avoid "using the whip system to create fear or close down debate," though he stopped short of abolishing it. He also suggested ending the adversarial system in the civil service, particularly between departments and the Treasury, and has previously expressed interest in splitting up the Treasury.
End of Trickle-Down Economics
Burnham's growth vision is founded on a "rejection of the old trickle-down model" pursued since the 1980s. This aligns with broader shifts across Western economies following the 2008 financial crisis. Rachel Reeves, the current chancellor, has similarly declared the era of "trickle-down, trickle-out economics is over." However, Burnham diverges in the breadth of his vision, promising an expanded role for the state in essential services, housing, and industrial strategy.
Public Ownership of Utilities
Burnham pledged greater public control over key utilities including water, energy, and transport, citing the transformation of Greater Manchester's bus network under his mayoralty, which brought the system back under public control. The future of Thames Water is seen as an early test case, with ministers deciding whether to place it into a special administration regime or allow bondholders to take over.
Social Housing Programme
Burnham promised the "biggest council house building programme since the postwar period," linking the loss of almost 1.5 million council homes since the 1980s to a rise in housing waiting lists to similar levels. He argued that affordable housing is crucial for individuals and the economy, enabling people to contribute fully. High housing costs, he said, have a "ruinous impact" on government finances, with record taxpayer support flowing to private landlords. Under Starmer, Labour had pledged £39 billion for social and affordable homes and a target of 1.5 million new homes, but the government may struggle to meet this.
High Streets and Business Rates
Burnham pledged to "reform business rates" to support pubs and other high street businesses that bring social benefits. Run-down high streets have become a key political battleground, with Reform UK highlighting boarded-up shops as a symbol of economic mismanagement. Labour faced backlash from hospitality and retail over business rates after similar promises before the 2024 election. Burnham did not address the role of technology, online shopping, or artificial intelligence in reshaping the economy.
Reindustrialisation and Industrial Strategy
Burnham said he would "safeguard sovereign manufacturing and production capability across the country in critical sectors like steel, defence, energy, food and farming." This reflects a growing focus on domestic manufacturing amid geopolitical tensions. Industrial decline has been seized on by Reform leader Nigel Farage, who called for nationalisation of the steel industry, though the party's free-market influences have held back the agenda.
Education and Employment
Burnham called for a "complete rethink" of support for the next generation, ending a school system configured entirely around the university route. Highlighting a report by Alan Milburn that found more than a million young people not in education, employment or training (NEET), he said parity between technical and academic education would be built. This includes mental health support in work and more devolved powers over employment support for mayors.
Cost of Living and Fiscal Rules
Burnham acknowledged constrained fiscal circumstances but said he would "set out 10-year plans to bring down the cost of essentials." He hinted at tax cuts and possible energy interventions, though the Treasury is wary. He said he "will seek to give Britain some breathing space as soon as I can." On fiscal rules, he pledged that his agenda would be "backed with sound public finances and the discipline of our current fiscal rules," retaining the borrowing and debt constraints drawn up by Reeves to avoid market backlash. UK borrowing costs have risen amid the fallout from the Covid pandemic and wars in Ukraine and Iran, but bond markets were little moved after his speech.
