Andy Burnham pledges to rewire UK with devolution and public ownership in first speech as PM-in-waiting

A new direction for Britain

Burnham's speech in Manchester on Monday, his first since Keir Starmer announced his resignation a week earlier, laid out a 10-year vision to "raise people's living standards" and break what he called a "rut" in national politics. The only declared candidate to take over as Labour leader and prime minister, Burnham is expected to be appointed by July 20 if uncontested. He said the Westminster system is "broken" and that the UK cannot continue as it has been.

Devolution and a 'No 10 North'

Central to his plan is the creation of "No 10 North", a Manchester-based outpost of the prime minister's office that would serve as the "nerve centre of a rewired Britain". This office would distribute power and resources across the country, reversing decades of centralisation. Burnham vowed to give regions "greater public control of essential services" including water, energy and transport, and to launch the "biggest council-house building programme since the post-war period".

The days of Whitehall fighting the devolution of power into the regions and nations are over for good.

Fiscal rules commitment

Despite the spending vision, Burnham stressed fiscal discipline, saying his plans are "consistent with the 2024 manifesto" and that he would not take risks with public finances. He reaffirmed Labour's fiscal rules: balancing day-to-day spending with tax revenues and reducing debt as a share of GDP. There had been market concern after he previously said the UK needed to get "beyond this thing of being in hock to the bond markets", but on Monday he pledged to adhere to the existing framework.

Whilst not taking risks with the public finances, [I] will seek to give Britain some breathing space as soon as I can.

Pitch to Scotland

Writing in The Scotsman, Burnham extended his devolution offer to Scotland, promising "local leaders the power and resources to connect communities, back young people and revive high streets". He said his approach would start "with the life people are actually living" and named cities such as Glasgow, Aberdeen and Dundee as beneficiaries. First Minister John Swinney responded cautiously, saying "rhetoric alone will not cut it" and insisting Scotland needed more job-creating powers and control over its energy.

Market and political context

The FTSE 100 dipped 0.2% on Monday amid Middle East tensions and anticipation of Burnham's speech. Analysts have struggled to pin down his full policy programme, given his rapid rise. The Guardian noted that Burnham's prior voting record offers clues: he has a mixed history on welfare reform and was absent on key austerity votes while serving as a cabinet member. Major unions are already lobbying over who should be his chancellor, underscoring the high stakes for economic policy.