Andy Burnham promises more devolution and public control of essential services

Burnham’s speech served as a comprehensive diagnosis of the nation’s ailments, tracing them back to what he termed "a series of wrong turns" initiated in the 1980s. He argued that this era marked a pivotal moment when economic power was systematically privatised, political power centralised, and the country underwent a profound deindustrialisation. This trajectory, he contended, was exacerbated by austerity measures that hollowed out local councils and stripped them of their capacity to act, with Brexit further compounding the damage, leading to a decade of stagnant growth and stalled regeneration across the UK.

Central to his critique was the state of vital public utilities, particularly the water industry, which he branded "a leaking monument to that approach – a country run in the private rather than public interest." This scathing assessment underscored his belief that the privatization experiment had demonstrably failed to deliver for the public. While stopping short of advocating for full nationalisation in the months leading up to his premiership, Burnham had consistently championed greater public control over both water and energy sectors. On Tuesday, he solidified this commitment, promising a detailed plan to achieve this objective before the end of the year. Pressed on the specifics for the water sector by Conservative MP Alison Griffiths, Burnham acknowledged the complexities of reversing privatisation, stating, "It’s a very regrettable situation that the privatisation of water has left us in a position where we’re going to find it very difficult to reverse," but insisted on the importance of "look[ing] at all possible solutions" to address the systemic issues plaguing the industry, from chronic underinvestment to environmental damage and rising consumer costs.

Beyond economic reorientation, a cornerstone of Burnham’s agenda is a radical expansion of devolution across England. Drawing heavily on his decade-long experience as Mayor of Greater Manchester, he presented a "clear theory of growth" that prioritises empowering regions outside the capital. He asserted that the success witnessed in Manchester through devolved powers could be replicated nationwide, creating the conditions for prosperity "in every single place across our regions and nations to be able to do the same, creating the conditions for good growth in every postcode." This approach aims to unlock local potential, foster innovation, and address the deeply entrenched regional inequalities that have long plagued the UK economy.

However, the Prime Minister’s devolution proposals were met with some apprehension, particularly concerning the potential for a "two-tier system" where areas without elected mayors might be left behind. Addressing these concerns directly, Burnham highlighted the case of Cornwall, where efforts to secure a devolution deal had been complicated by the county’s reluctance to form a group with Devon or adopt an elected mayor. In a pragmatic concession, he assured the House that his government would work collaboratively with Cornwall Council and its six MPs on a bespoke devolution deal "with or without an elected mayor." This flexible approach, he confirmed, would be extended as "the same offer to all parts of England without devolved power," demonstrating a willingness to tailor devolution models to local preferences. Furthermore, he expressed interest in exploring a "local model of devolution" within Scotland, Wales, and Northern Ireland, signaling a broader commitment to decentralisation across the entire United Kingdom.

The ambitious proposals immediately drew sharp criticism from the Conservative leader, Kemi Badenoch. She accused Burnham of advocating for "more government control, more taxes and more politicians," fundamentally misdiagnosing the nation’s challenges. Badenoch firmly rejected his economic philosophy, stating, "His diagnosis is completely wrong, his theory of growth is completely wrong, he thinks that if government spends more money, we will all get richer – that is not how this works." She cautioned the new Prime Minister that his role in Downing Street would be "very different" from his previous mayoral post, where he "did not have to make difficult trade-offs," implying that the complexities of national governance would soon temper his more idealistic proposals.

Burnham’s address marked a significant moment, not only as his first parliamentary appearance as Prime Minister but also as the opening day of the new parliamentary session, following his appointment on July 20th, shortly after Parliament closed for its summer recess. Returning to Westminster after a decade away, he articulated a "clear diagnosis" of the nation’s trajectory. He lamented that "Britain is not where we would wish it to be" but promised to "build a new sense of optimism around the country," underpinned by his vision for economic and political reform. He expanded on the historical "wrong turns," detailing how "political power was centralised, economic power privatised, the country deindustrialised, austerity followed, hollowing out councils and depriving them of the agency to act to reverse any of this," before Brexit "compounded the damage, ushering in a decade of low growth and stalled regeneration."

Beyond the core themes of public control and devolution, Burnham offered indications of his government’s approach on several other pressing issues during his extensive three-and-a-half-hour statement. On welfare, he suggested that the "Labour way" of reducing the benefits bill would involve a significant investment in council homes, thereby bringing down rental costs for more people and alleviating financial pressure on households. In housing, he committed to introducing legislation to facilitate the transition for homeowners from the archaic leasehold system to a more equitable commonhold form of ownership, granting greater control and collective responsibility to residents.

Defence spending also featured in the discussions. Asked by Badenoch about his commitment to national security, Burnham highlighted his strategic appointment of John Healey as Chancellor, specifically citing Healey’s "commitment to defence." This reference subtly acknowledged Healey’s earlier resignation as Defence Secretary under the previous Prime Minister, Sir Keir Starmer, due to concerns over insufficient resources for national defence, underscoring Burnham’s intent to prioritise the sector.

Liberal Democrat leader Sir Ed Davey seized the opportunity to argue that too much power in the UK remained "in the wrong hands" and called for "fundamental change" to the political system, advocating for electoral reform. Burnham responded by stating his government would examine the voting system but clarified that no changes would be introduced before the next general election.

Energy policy also sparked debate, with questions from Reform UK’s Richard Tice and the Green Party’s Ellie Chowns regarding the approval of new drilling licences at the Rosebank oil field and Jackdaw gas field in the North Sea. Tice urged the Prime Minister to permit more domestic drilling, decrying it as "madness to import gas from overseas when we have our own gas in the North Sea." Conversely, Chowns vehemently opposed such moves, arguing that "the climate damage they would create hugely outweighs any possible benefit." Burnham, in response, promised a "pragmatic approach," aiming for the transition to renewable energy to be achieved "as effectively and affordably as possible," balancing energy security with climate commitments.

The parliamentary session began against the backdrop of a significant political development: a surprise announcement shortly before Burnham’s speech from Sir Keir Starmer, who confirmed he would be stepping down as an MP, less than two months after his resignation as Prime Minister. Burnham began his address by paying tribute to his predecessor, acknowledging Sir Keir’s "lifetime of public service" and crediting him with creating a "platform to change this country for the better." This moment of cross-party respect, however, quickly gave way to the robust debate and ideological clashes that defined the Prime Minister’s inaugural parliamentary appearance. Andy Burnham’s first address as Prime Minister thus marked a clear declaration of intent: to fundamentally reshape Britain’s economic landscape and empower its regions, setting the stage for a new political era focused on public interest and decentralised governance.