After his formal election as Labour Party leader on Friday, Andy Burnham, who is preparing to become Prime Minister, is set to announce a series of economic measures. According to Bloomberg, Burnham asked his team to prepare new plans for the water and energy sectors. The plans include allowing new oil and gas drilling in the North Sea and bringing Thames Water into public ownership.
New drilling in the North Sea
The outbreak of the Iran war and the rise in oil prices have increased the importance of North Sea reserves. Current Energy Secretary Ed Miliband had resisted new drilling on environmental grounds. This policy was criticized by both US President Donald Trump and the Reniupal organization, which includes representatives of the British energy sector.
According to unnamed sources, Burnham's team is considering various options, including approving new drilling at the Jackdaw gas field and the Rosebank oil field off the coast of Scotland.
Thames Water to be placed under special administration
Burnham's aides also asked civil servants to prepare a plan to bring Thames Water under public oversight. The planned options include placing the company under a 'special administration' regime, i.e., a temporary nationalization process.
According to sources close to the matter, Burnham is expected to proceed in this direction. Thames Water serves 16 million customers in and around London. The sources also said Burnham might prefer the company to operate under a cooperative model, serving customers on a not-for-profit basis. This option is supported by many Labour MPs as it would be less costly than nationalization.
Criticism of Thatcher's policies
In his first speech as Labour leader, Andy Burnham targeted the policies of the Thatcher government in the 1980s. 'Britain made a series of wrong decisions in the 1980s,' Burnham said, referring to the privatization of many public companies by former Conservative Prime Minister Margaret Thatcher.
According to the Financial Times, Burnham argued that these policies 'centralized political power and privatized essential infrastructure.' Burnham said that, in contrast, his approach planned to devolve powers from the government to cities. He also promised more powers for local councils to build housing and pledged social housing.
Support for business and local powers
Burnham stressed that as Labour leader he would be on the side of business, just as he was when he was Mayor of Greater Manchester. 'As Labour leader, I will be a champion of business, just as I was when I was Mayor of Greater Manchester,' Burnham said, highlighting the importance of working together.
Responding to criticism referencing his 'King of the North' nickname, Burnham said his summer tour of the country would cover 'all parts of the United Kingdom,' including the South.
Cabinet expectations
Although Burnham has said he will not announce ministers before taking over as prime minister on Monday, there is speculation in the British media. According to the Financial Times, current Home Secretary Shabana Mahmood is expected to replace Rachel Reeves as Chancellor of the Exchequer. It is also predicted that Ed Miliband will not continue as Energy Secretary due to disagreements over energy policy.
