Andy Burnham Becomes UK Prime Minister, Outlines Decentralization and Key Policy Shifts

Former Greater Manchester mayor Andy Burnham becomes Britain's prime minister on Monday after being elected leader of the governing Labour Party last week.

Following are the policies he has spoken about since returning to parliament in June, which offer an insight into how he could tackle a cost-of-living crisis, revive anaemic economic growth and win back voters.

EARLY POLICY DECISIONS

Burnham has said he will scrap plans for employees to be required to hold a digital identity document, a scheme to tackle illegal migration deemed a "fiasco" by a cross-party committee of lawmakers.

His ally, Deputy Labour Leader Lucy Powell, suggested the government could force heavily indebted Thames Water, Britain's largest water company, to operate under government control.

A group of Thames Water creditors have threatened legal action if Burnham moves to nationalise the utility.

DECENTRALISATION OF POWER

Burnham has promised to "bring about the biggest rebalancing of power our country has seen".

His focus is on Whitehall, where public officials help elected ministers devise and implement policy, which he said had become overly powerful to the detriment of Britain's regions.

"It is time for Whitehall to accept that growth cannot be ordered from the top down. Instead, it can only be nurtured from the bottom up," he said on June 29.

While focusing initially on England, where 85% of the United Kingdom's population live, he has said regional devolution should also be extended in Scotland, Wales and Northern Ireland, nations where semi-autonomous assemblies legislate on most domestic issues but lack tax-raising and borrowing powers.

He has promised to hand more powers over economic development, housing, transport, education and skills to the regions and to set up a "Number 10 North" in Manchester in northwestern England - a mirror of 10 Downing Street in London, the home and office of Britain's prime ministers.

Number 10 North will drive a decentralisation of power and help the regions reform essential utilities, reindustrialise and regenerate, he said, to oversee "good growth" in every postcode.

Burnham has also promised to hand the regions greater public control of essential services such as water, housing, energy and transport.

REINDUSTRIALISATION

Burnham has said he wants Britain to rebuild its industry, promising to support domestic production capability in critical sectors such as steel, defence, energy, food and farming.

Defence is a particular target.

DEFENCE

Burnham will need to find an additional £4.7 billion ($6.3 billion) to fully fund the government's defence spending plan.

In one of his final acts as prime minister, Keir Starmer presented a defence review committing Britain to significant military investment, but left part of the funding unresolved, meaning the money will most likely have to come from either spending cuts or higher taxes.

Burnham said this month he would "take my responsibilities fully" to fund the plan.

EDUCATION AND APPRENTICESHIPS

Burnham has said he wants to see less focus on university education and more on technical and vocational qualifications, to build a system "based on parity between academic and technical".

He has also urged businesses to offer more apprenticeships.

HOUSING

Burnham has pledged to oversee "the biggest council house (social housing) building programme since the post-war period" after 1945, and use vacant public land to reduce costs.

He described it as adopting "a national Housing First philosophy, as has been pioneered so successfully in Finland".

The Nordic country offers homeless people a home rather than temporary accommodation, viewing this as a secure environment from which to tackle other issues.

TAX

Burnham has promised to stick to the Labour government's self-imposed fiscal rules, which require it to match day-to-day spending to revenue by the end of the decade, and to the party's manifesto commitment not to increase taxes on working people.

He has suggested potential tax reforms, such as overhauling business rates to support pubs and high street businesses, and has expressed support for a land-value tax - an annual tax on the market rental value of land rather than on the buildings. Such a tax could prompt the abolition of 'stamp duty' on home sales, and possibly replace council tax, paid by households for local services.

He has also said that, when campaigning for his parliamentary seat in Makerfield in northwestern England, he heard frustration about the level at which tax kicks in. This has been frozen at £12,570 ($16,928) since 2021, meaning more people have become eligible to pay as wages have risen.

SOCIAL CARE

Burnham has said care for older and disabled adults needs an overhaul after successive governments failed to secure agreement on funding it over the long term, and that he is ready to "grasp the nettle".

Burnham first tried to reform the funding of social care when he was health minister under Gordon Brown's premiership.

Unlike the state-run National Health Service, social care in Britain is not free for most people.

IMMIGRATION

Burnham has been muted in his comments on illegal immigration, which often tops the list of voters' main concerns.

He did not mention the issue on Friday, when he became Labour leader, but has said he supports tighter control and measures to reduce the number of asylum seekers who arrive in Britain on small boats.

FOREIGN POLICY

Burnham has said less on foreign policy, but earned approval from some on the party's left when he said the government should put more pressure on Israel.

He has vowed to maintain Britain's support for Ukraine to defend itself against Russia's invasion and pledged closer ties with other European countries, especially on defence and security.