Six Political Headaches Andy Burnham Must Tackle in His First Weeks as PM

Andy Burnham has inherited a perfect storm of problems, each one more pressing than the last. As he prepares to take office from Keir Starmer, the Labour leader faces challenges that will test his mettle as a statesman and politician.

A Cost of Living Crisis

Burnham’s policy adviser, Miatta Fahnbulleh, has promised a “short-term” focus on the cost of living. This means implementing measures such as a year-long rent freeze for the private sector, reduced bus fares, and removing green levies from energy bills. However, these ideas require significant funding, which may be harder to come by than expected.

The £4.7bn black hole in Burnham’s defence investment plans is already a major concern. Increasing borrowing won’t provide a long-term solution, as inflation triggered by the Iran war continues to deplete the government’s headroom against debt targets. To keep his promises without breaking the bank, Burnham must get creative.

Thames Water: A Mess that Requires Urgent Attention

The water company Thames Water is careening towards disaster, with creditors trying to negotiate a £10bn rescue package. Burnham faces an impossible decision: whether to go ahead with the deal or ask the high court to put the company into special administration. Emma Reynolds’ recent opposition to the rescue plan sets a precedent for Burnham’s approach.

The implications of this decision are far-reaching. If Burnham chooses to intervene, he risks opening Pandora’s box: the possibility of public ownership may become increasingly plausible. This would require significant changes to Labour’s policy and could create a rift between Burnham and his party faithful.

Funding Defence without Breaking the Bank

The £4.7bn black hole in defence spending is a ticking time bomb that requires urgent attention from Burnham’s team. Increasing borrowing might provide some relief, but it’s not a long-term solution and could lead to fiscal recklessness down the line. As inflation continues to rise, Burnham must balance competing interests and find creative solutions.

The EU reset agreement, an ambitious plan to potentially cost over £100m in new fees for European students, is a contentious issue that requires delicate handling from Burnham. Will he stick with the original deal or try to renegotiate?

A Shift in EU Relations

The EU reset agreement represents a significant shift in Britain’s relations with its European partners. As Burnham navigates these treacherous waters, he must balance competing interests and find common ground with Brussels.

However, this is not the only challenge on his plate. The Iran war has caused a serious rift in the transatlantic relationship, one that Burnham must now repair if he wants to maintain Britain’s standing on the world stage. Will he try to heal old wounds or seek distance from the volatile US administration?

A New Era of Politics

As Burnham prepares to take office, he faces a defining moment in British politics. His decisions will set the tone for his premiership and determine the direction of Labour’s policy. Will he choose to stick with the status quo or try something new?