Burnham sets out pro-business Labour agenda

Andy Burnham was confirmed as leader of the Labour Party at a special conference on 17 July 2026 and is expected to become prime minister on Monday. In his first speech as party leader, he said he was ready for government and described his priorities as "unashamedly Labour." He framed his leadership as a change in both style and focus, combining a commitment to business with a stronger role for the state in key sectors.

Burnham said he would be "a pro-business leader of the Labour Party," linking this stance to his record as mayor of Greater Manchester. At the same time, he emphasised that his economic programme would seek to reshape how power and resources are distributed across the country.

A central theme of Burnham’s opening pitch was devolution. He pledged to "take power back from Westminster and Whitehall and give it back to the place where you live," signalling a shift toward greater authority for local and regional institutions. This approach is tied to his broader economic aims, including reindustrialisation and support for local high streets.

Burnham linked devolution to a drive to reinvigorate high streets and to expand council housing and social housing. He has also highlighted the importance of improvements to education as part of an industrial strategy designed to support growth in different parts of the country, rather than concentrating decision-making in central government.

On tax policy, Burnham said he would stick to Labour’s 2024 manifesto pledge not to raise the main rates of income tax, VAT or National Insurance. He indicated there would still be scope to review other tax measures and thresholds, leaving room for targeted changes within that overall commitment.

During his by-election campaign and in policy materials circulated around his leadership bid, Burnham proposed a 20% cut in business rates for pubs and music venues. The proposal would be funded by higher business rates on large out-of-town warehouses and by raising the threshold at which smaller high-street businesses begin paying business rates, aligning fiscal measures with his high-street renewal agenda.

Burnham has set out an economic programme that includes greater public control of essential utilities, particularly water. He has spoken about public control in areas where private provision has been seen to fail, making utilities a focal point of his early policy agenda.

His transition team has asked civil servants to prepare options on energy and water policies that could be announced within days of him taking office. Options being developed include signaling potential backing for new drilling at North Sea fields such as Jackdaw and Rosebank, alongside steps to bring Thames Water into greater public control through mechanisms such as special administration, mutualisation or other forms of public influence.

Taken together, these signals outline an approach that seeks to balance a pro-business stance with more active state involvement in key sectors, alongside a commitment to fiscal restraint on headline tax rates. The initial agenda suggests an emphasis on regional empowerment, support for local enterprises and a reworked settlement between the public and private sectors in utilities and energy.