As it looks inevitable that Andy Burnham will be the next Prime Minister, we should consider what this might mean in policy terms.
But first, Sir Keir Starmer. He could not continue after the Mandelson saga, electoral wipeout, and the worst personal approval ratings in history. I voted for him in the leadership contest after Jeremy Corbyn resigned. I recognised he might not be a charismatic leader, but after Johnson and Truss, boring looked good. However, I didn’t reckon on him being such a poor politician as his early decisions in government highlighted. He also got sucked into internal factional infighting, which contributed to the loss of members and activists. Labour has to be a broad church.
The usual suspects claim we don’t know what Andy Burnham stands for. He may not have published a manifesto, but he hasn’t been shy at setting out his political philosophy – Burnhamism if you must label it. You might summarise it as devolution, preventative action and tackling social inequality. Matthew Flinders has a good go at articulating this today. And from a Scottish perspective, Marissa MacWhirter makes similar points based on her interview with him last year.
As someone who has argued that Scotland is too centralised, his support for local government is very welcome. As Matthew puts it “Burnhamism represents a complete rejection of the traditionally centralised, elitist, two-party, Whitehall-knows-best Westminster model. It seeks to shift towards a power-sharing model that can accommodate long-term strategic policy-making.” This must be more than devolution to regions and nations. It has to filter down to real communities of place.
The emphasis on preventative action reflects what we said in the Christie Commission many years ago. The government doesn’t need to keep spending more if it invests in tackling the root causes of inequality. There is a broad consensus that this is the right approach, although delivery has been patchy. It will be interesting to see if a true believer in this approach can achieve what governments in Scotland and the UK have failed to deliver.
He is also a supporter of proportional representation, although I regret that it may not be an immediate priority.
If you want a manifesto, then the Burnham supporting Mainstream has published ‘The Productive State: A Framework for Manchester’ – or in short ‘Manchesterism’. Matthew Lawrence and Alex Williams make the case against privatisation, another Burnham theme, arguing that “The retrenchment of public control has created an economy that extracts where it should invest, fragments where it should coordinate, and prices for profit where it should provide for use.” While the UK Government has made some modest changes in the right direction, the authors rightly argue that they have failed to make the necessary structural changes.
In contrast, the Productive State does this with a toolkit that reasserts national economic sovereignty by directly engaging in public investment, provision, ownership, and coordination of and between essential sectors. This doesn’t ignore the strengths of markets in rewarding innovation and competition, but targets the specific domains where markets have demonstrably failed: where productivity is exhausted and profit is rent extraction; where prices are systemically significant and threaten macroeconomic stability; and where private capital chronically underinvests. Structurally, they argue we should use the public corporation model, operationally independent, commercially mandated, borrowing in its own name, and prioritising resilience over financial return.
Andy Burnham has done some of this in Manchester with the Bee Network, expanded council housing, and the Good Growth Fund. This helps highlight what public control produces in practice. The challenge will be in scaling this up across the UK. While some of this can be achieved without a massive increase in public spending, more investment will be needed.
This leads to potential issues with the bond markets. When the interest charged on UK bonds rises, for example, British banks face higher funding costs themselves. This in turn feeds into higher mortgage rates, more expensive business loans and tighter financial conditions. In the UK, total government debt now stands at about £2.9 trillion, with interest rates (yields) currently higher than those paid by the US, Italy, France, Canada, Germany and Japan. Burnham has indicated that he feels we are too much in hock to the bond markets and there are those, like Yanis Varoufakis, who go much further. Others argue for Modern Monetary Theory, but this is certainly a step too far for a new PM. Burnham is likely to bring in some economists with new ideas, such Andy Haldane, with his ideas on war bonds to finance defence investment.
Overall, even an old cynic like me is excited about what an Andy Burnham premiership could bring to our politics. Public sector delivery, preventative spending, tackling social inequality, and above all, localism, are all aligned with my policy perspective. Of course, he will have to face the carping from the usual suspects, the billionaire owned media and the difficult economic position. However, he understands that managerial tinkering around the edges just won't solve the UK's huge structural problems. A decisive change is needed, and we should give him the time and space to go for it.



















