Andy Burnham will be anointed prime minister on Monday after a meeting with King Charles III, but even before he steps into Downing Street he faces a combustible mix of pressure: a promise to slash energy bills by £130 a year, a US president celebrating a shift on North Sea drilling, and a party demanding “heads on pikes” in his cabinet.
The incoming Labour leader, who secured the job without a contest after being the only candidate and winning the backing of 379 MPs, has vowed to restore confidence in government and give people “breathing room” in his first speech from Downing Street. He is expected to characterise the moment as one of “reflection and resolution”, arguing Britain must be honest about the challenges it faces.
“Burnham becomes PM on Monday facing energy bill cuts, North Sea oil row and cabinet infighting.”
One of his first acts could be a £130 cut to the average household energy bill, under proposals drawn up by thinktank Nesta and reported to be under consideration by Burnham’s team. The plan would remove some policy levies from bills and shift the cost to general taxation, making electricity cheaper and running a heat pump cheaper than a gas boiler. Andrew Sissons, director of Nesta’s sustainable future project, said: “By combining a zero-taxpayer-cost reform of the gas standing charge with these targeted tariff cuts, the government can deliver around £130 a year in immediate financial relief for the majority of UK households, while making clean heating the cheapest option on the market.” The changes would also cut standing charges and reduce tariffs.
But Burnham’s energy agenda is already overshadowed by a furious row over North Sea oil. US President Donald Trump claimed on TruthSocial that Burnham “will be opening up, all the way, the invaluable North Sea Oil” and move the “horrible looking windmills”. Labour’s deputy leader Lucy Powell dismissed the speculation, telling the BBC’s Laura Kuenssberg: “I think what Andy’s talking about is taking a more pragmatic approach and working with the industry.” The Guardian understands that tieback arrangements – connecting new fields to already approved production facilities – could allow new drilling without technically breaching Labour’s 2024 manifesto pledge to not issue new exploration licences. The BBC has been told Burnham’s government will announce plans for new oil and gas drilling in the North Sea.
Meanwhile, Burnham is preparing a cabinet reshuffle that risks angering nearly half of the Parliamentary Labour Party. MPs have warned that the former Greater Manchester mayor could upset the 2024 intake of 243 Labour MPs – instrumental in ousting Sir Keir Starmer – if he does not promote them. “What Andy needs to be wary of is there will be about 200 MPs who will be very disappointed if they don’t get a job,” one MP told the i Paper. A Burnham ally added: “A third of the Cabinet will go, perhaps up to eight of them. That is a massive change, probably the biggest change of senior personnel outside of a general election.” The expectation that Home Secretary Shabana Mahmood is being lined up as chancellor has sparked a fresh bout of infighting, while some Burnham supporters have demanded he “make an example of Starmer loyalists”. One MP said: “There will need to be some heads on pikes.”
Burnham has promised to be bolder and more ambitious than Starmer while sticking to Labour’s manifesto, which talked about “redistribution of power” and “rewiring of our country”. He has already ditched the digital ID scheme announced by Starmer, which Powell called a “small example of reprioritising”. On style, he is expected to forego a shirt and tie as prime minister, opting for a black t-shirt and jacket except in the chamber or for exceptional events, according to the Sunday Times.
On electoral reform, a sizable chunk of the PLP wants change. During the Makerfield by-election campaign, Burnham said: “I am committed to proportional representation.” But how quickly he will move remains unclear. Calling his appointment “the most significant change” in politics for 40 years, Burnham insists he has “a plan”. But with opposition parties urging a general election to secure a mandate, and with gaps in detail about his policies, the road ahead looks anything but smooth.
