What Andy Burnham, Tipped To Be Next UK PM, Has in Vision?
Andy Burnham’s return to parliament has made the mayor of Greater Manchester the frontrunner to replace Keir Starmer as prime minister, and with him comes “Manchesterism”, his vision of Britain.
Burnham won the by-election in the Makerfield constituency in northern England after spending almost a decade outside Westminster as mayor of Greater Manchester, one of England’s largest cities.
Manchesterism
The 56-year-old wants to restructure the UK economy amid stop-start growth and strained public finances, learning from Manchester’s rapid economic rise.
Here’s a brief look at his “Manchesterism” economic model, which he describes as “business-friendly socialism”, and his broader plans.
delegation of authority
Burnham’s vision is clearest on devolution: accelerating the transfer of power from London, which has increasingly dominated the British economy in recent years.
Although some powers have been devolved to Scottish and Welsh parliaments and elected city-region mayors over the past 30 years, progress has been limited in changing economic levers such as infrastructure spending or control over taxation.
This makes the UK one of the most fiscally centralized countries in the developed world, according to OECD data. Economists say this increases inequality between London and elsewhere.
Burnham promised to reshape Britain’s financial architecture by giving communities direct control over the things that shape daily life, such as housing, utilities, transport and education.
Manchester’s integrated Bee Network – a system that draws people back to public transport – is Manchesterism in action.
Tax and Expenditure
Burnham has yet to determine how he will balance taxes, spending and borrowing. His campaign focused on reassuring investors about his financial reliability.
Last September, Burnham discouraged investors by stating that the UK needed to “move beyond remaining hostage to bond markets”.
He said in January that he had been misrepresented: he was not indifferent to the £2.8 trillion ($3.7 trillion) British government bond market, but believed the “low growth cycle” economy was not benefiting investors.
Burnham says years of privatization and deregulation have not only taken away government control over costs and services, but also led to inefficiencies.
He cites the chronic shortage of low-cost social housing as a prime example of this; This causes the government to pay large subsidies to private landlords.
Burnham has pledged to comply with current fiscal rules, which include balancing day-to-day spending with revenues by 2029/30, and to fulfill Labour’s 2024 manifesto promise not to increase taxes on workers.
This commitment excludes increases in the tax rates that raise most government revenue: income tax, employee National Insurance and value added tax.
He has withdrawn some proposals that would have had major impacts on spending, including compensation for women raising the retirement age from 60 to 65 and cuts to student loan repayments.
But Burnham has committed to retaining the triple lock, which increases state pensions each year in line with inflation, average earnings growth or 2.5 per cent (whichever is higher) and costs the Treasury billions of pounds.
He called for greater state control of public services, while stopping short of committing to full renationalization; critics say the definition of this distinction is incomplete. But in the case of debt-laden Thames Water, Burnham said he could see an opportunity for public ownership.
“Its national economic credibility has not been tested… It remains unclear whether its regional approach will translate effectively into national policy,” said Kallum Pickering, chief economist at investment bank Peel Hunt.
Immigration
Burnham supports some of the tougher immigration policies introduced by home affairs minister Shabana Mahmood in recent months, which aim to limit both legal and illegal immigration.
On illegal immigration, Burnham said she would take tougher action to deter people from crossing the English Channel from France in small boats, while also arguing that refugees needed safe legal routes to Britain.
He suggested Mahmood might soften some of his measures, saying people already in the country and “left in limbo” by the immigration system should be able to work.
Health and Social Care
Burnham, who served as health minister from 2009 to 2010 during Gordon Brown’s premiership, said he would seek to reform Britain’s social care sector to ease pressure on the National Health Service.
As the cost of caring for older people in care homes rises, successive governments have sought to overhaul social care.
He told the Guardian newspaper he would consider how changes to inheritance tax could help fund a fix to social care.
European Union Membership
Burnham campaigned for Britain to remain in the European Union during the Brexit referendum in 2016. Two years later, he said he would support a second referendum while exit terms were being negotiated.
Last year he said he wanted to see Britain rejoin the EU in his lifetime. After running for Makerfield, he said EU membership was not a priority.
“I am not suggesting that the UK should consider rejoining the EU,” he said as he launched his campaign. “I respect the decision taken in the referendum.”
