‘I have a plan and I am pro-business’ – Daily Business

Andy Burnham prepared for his move into Downing Street on Monday with a speech that was part-reprimand for Labour’s past mistakes and part-promise to revolutionise how the country is run.

The prime minister-in-waiting used his first address as Labour leader to demand an end to factionalism in the party and a promise to give power back to the people in a re-industrialisation of Britian.

Critics jumped on some apparently contradictory signals, including a rejection of Thatcher’s privatisation of the 1980s, while stating his pro-business credentials.

There were also questions about how he would fund his ambitions to effectively take back control of key industries and whether this would lead to a wave of nationalisation and a surge in borrowing.

Reflecting on a “series of wrong turns in the 1980s” under Thatcherism, he said political power had been centralised and economic power privatised” and the country had surrendered control of essentials such as housing, water, energy and transport.

This had left the people exposed to higher costs and had “concentrated wealth and power in the hands of fewer people and places.”

Mr Burnham stated: “I know what I want to do and I have a plan,” without offering any further details. However, he hinted at more state intervention in the economy.

Despite that, he was a pains to stress his desire to work with the private sector.

“Make no mistake everybody, I will be a pro-business leader of the Labour Party as I was a pro-business Mayor of Greater Manchester,” he said. “We turned places round together. And that is the way we ran in Manchester and will take to the whole country.”

Among his five pledges was a commitment to deliver for the whole of the UK – “for the north, the south, the east and the west, for Scotland, Wales and for Northern Ireland”.

Attention in Scotland will be focused on his relationship with the Scottish government and the First Minister amid talk of a written constitution to more clearly define territorial powers.

There is also a focus on his approach to North Sea oil and gas, with Aberdeen and Grampian Chamber of Commerce CEO Russell Borthwick recently inviting him to the north east. Sir Keir Starmer failed to visit the region during his two year premiership. Mr Burnham is said to be more sympathetic to the industry. He has pledged to spend the summer touring Britain and a trip to northeast Scotland is almost certain to be on the agenda.

He will look to rebuild Labour in Scotland where in May it suffered its worst election result since the Scottish parliament was created in 1999.

Anas Sarwar, who had risked his political career by calling for Sir Keir to stand down during the Scottish election campaign, said: “As Andy said today, we are ready to give hope back to the people of the UK and put power back in the hands of working people. 

“Our movement must win back the trust of working people and face down the poison of Reform – I know Andy Burnham will work day and night to do this and to deliver for the people of the United Kingdom.”

Mr Burnham has been keen to portray himself as one of those people, and has been prepared to be humble by admitting his errors.

“I haven’t got everything right and I am sorry for where I have fallen short,” he told the gathering of Labour members, who included past leader and mentor Lord Kinnock.

“I have always given it my all and I always will,” he said. “I have listened and learned as I have gone along and hopefully I have got better.

“I know what I want to do and I have a plan. And what I also want you to know is that I won’t change. I have a style, it’s my style. I will always stay close to the ground, close to the people.”

He spoke of getting his ideas from meeting people in fast food chain Greggs and in the pub, though these are places that will he will only visit as PM surrounded by advisers and bodyguards which will make them much more formal occasions.

The markets are now awaiting finer details of his “plan” and, more immediately, his choice of Chancellor, with Shabana Mahmood still favourite for the job.

Susannah Streeter, chief investment strategist at Wealth Club, said: “Andy Burnham is inheriting an economy where political turmoil has become a defining feature of the landscape, so restoring stability will be crucial to boosting confidence.

“He will be the seventh Prime Minister in a decade, so investors will want to see a reset and reassurance that the economic landscape will remain predictable enough to justify committing capital for the long term.”