Andy Burnham, who is preparing to take over as Prime Minister as leader of the Labour Party in the UK, announced an economic plan involving radical changes in energy and infrastructure. According to Bloomberg, Burnham has instructed that new oil and gas drilling in the North Sea be approved and that Thames Water be brought under public control.
Radical shift in energy policy
The rise in oil prices triggered by the Iran war has brought the strategic importance of North Sea reserves back onto the agenda. New drilling, which former Energy Secretary Ed Miliband resisted on environmental grounds, is now on the table under Burnham's leadership. Unnamed sources said that drilling options in the Jackdaw gas field and Rosebank oil field off the coast of Scotland are being evaluated.
Water company to be nationalised
Another priority for Burnham is bringing Thames Water under public oversight. Under the plan, the company would be placed into a special administration regime, effectively a temporary nationalisation. The option of running the company, which serves 16 million customers in and around London, as a not-for-profit cooperative is also among the supported options.
Criticism of Thatcher's legacy and pledge of localism
In his first speech as Labour Party leader, Burnham targeted the policies of the Thatcher government of the 1980s. According to the Financial Times, Burnham criticised Margaret Thatcher's privatisation of public companies, saying "Britain made a series of wrong decisions in the 1980s." Burnham said powers would be devolved from the centre to cities and that local councils would be given more authority to build housing.
Support for business and cabinet speculation
Burnham stressed that he would be on the side of business, as he was during his time as Mayor of Greater Manchester. Responding to criticism of his "King of the North" nickname, Burnham said his summer tour would cover all regions of the country. According to media speculation, current Home Secretary Shabana Mahmood is expected to become Chancellor of the Exchequer, and Ed Miliband is expected to leave the Energy Department.
