An Andy Burnham Premiership: What Will it Mean for the Energy, Infrastructure and Development Sectors?

At the heart of Burnham's agenda is a belief that power, wealth and decision-making need to move away from Westminster and towards local communities. He has stressed that this vision is not simply focused on the North of England, arguing that greater local autonomy should extend across England and be accompanied by deeper devolution for Scotland, Wales and Northern Ireland.

For the energy, infrastructure and development sectors, this could represent one of the most significant shifts in governance for a generation. Combined authorities and regional mayors are likely to gain greater influence over transport, regeneration, housing and strategic planning decisions, creating new centres of political and economic power outside Whitehall.

Burnham has reinforced this message through proposals such as a "No.10 North" and his wider concept of "Manchesterism for everywhere" – an attempt to apply the model developed in Greater Manchester at a national scale. The approach combines fiscal discipline with strategic public investment in transport, housing and regeneration, alongside targeted state intervention where markets are not delivering desired outcomes.

Examples of this approach can already be seen in Greater Manchester, where Burnham championed bus franchising, expanded integrated transport through the Bee Network and used devolved powers to pursue a more coordinated approach to housing and regeneration. A Burnham government would likely seek to replicate elements of this model nationally, with local leaders playing a greater role in shaping economic development and infrastructure investment.

The Treasury Question

While Burnham is yet to announce a cabinet, attention has quickly turned to who will become Chancellor and, perhaps more importantly, what that appointment signals about the government's economic approach.

Recent reports have suggested Shabana Mahmood may be the frontrunner for the role, ahead of Ed Miliband, who had long been viewed as a leading contender. Should Mahmood be appointed, the move would likely be interpreted as a signal of fiscal caution and continuity, aimed at reassuring markets while still delivering Labour's wider programme of reform.

At present, Mahmood does not have an extensive economic track record compared with some potential rivals, meaning investors and businesses will be looking closely at her early fiscal statements and spending priorities. More significant than the appointment itself will be the Treasury's willingness to support large-scale capital investment in housing, transport and energy infrastructure, all of which will be central to Burnham's growth agenda.

By contrast, a more prominent economic role for Miliband would likely be viewed as a stronger signal of interventionist government and accelerated climate investment. The balance that Burnham strikes between these competing instincts will be one of the earliest indicators of how radical his premiership intends to be.

Energy Policy Under Burnham

The energy sector will be particularly focused on the future of Ed Miliband. After playing a leading role in placing net zero and energy security at the centre of Labour's agenda, Miliband is reportedly being considered for alternative roles, including Foreign Secretary.

A move away from the Department for Energy Security and Net Zero would inevitably create uncertainty about the direction of future policy. Miliband has become one of the UK's most recognisable advocates for clean energy investment and decarbonisation. His successor's early comments and appointments will therefore be scrutinised closely by investors, developers and energy companies alike.

At the same time, Burnham has already signalled a potentially different approach to the North Sea than that taken by his predecessor. Reports suggest he is prepared to permit additional production through so-called "tie-backs" — developments that connect new reserves to existing offshore infrastructure rather than requiring entirely new fields to be opened. The approach is likely to be presented as a means of balancing energy security, employment and the transition to a lower-carbon economy.

Mindful of concerns within both the industry and trade unions, Burnham has reportedly sought to reassure those working in the sector, telling Scottish Labour MPs that one of his earliest visits as Prime Minister will be to Aberdeen to underline the importance he attaches to the North Sea oil and gas industry and its workforce. Such a move would be viewed as a significant political signal, reflecting the economic importance of the sector and Labour's desire to maintain support in traditional energy-producing communities while continuing to pursue its wider net-zero ambitions.

Ultimately, the key question for the sector is not whether the UK continues its transition to net zero, but how that transition is delivered. Under Burnham, there may be a greater emphasis on linking energy investment directly to regional economic development, industrial strategy and job creation. The balance struck between support for domestic oil and gas production, renewable energy deployment and wider industrial decarbonisation will be among the clearest indicators of the government's economic priorities.

Housing and Development

Perhaps the most ambitious commitment made so far is Burnham's pledge to oversee "the biggest council house building programme since the post-war period".

Housing sits at the centre of Burnham's economic philosophy. He has consistently argued that secure and affordable housing is not simply a social good but a prerequisite for economic productivity, workforce mobility and long-term prosperity. This marks a deliberate move away from the idea that housing supply can be left largely to the market and towards a more active role for the state.

Councils would be given greater powers and resources to deliver homes directly, while extensive use would be made of vacant public land. If pursued at scale, such a programme would create significant opportunities across the housing supply chain, from planning and design through to construction, engineering and long-term asset management.

More broadly, Burnham has spoken about future development being focused on higher-density town and city centres. This aligns with his wider ambition of revitalising high streets and creating places that are economically vibrant, socially connected and less reliant on private car use.

For developers, this could signal a planning environment increasingly favourable towards brownfield regeneration, mixed-use development and urban intensification. For infrastructure providers, it may also support greater investment in public transport, utilities and social infrastructure around major town and city centres.

Alongside this, Burnham has pledged support for local businesses that "bring people together", such as pubs, cafés and hairdressers, through reform of business rates and other measures designed to support local economies.

Transport Infrastructure

Transport infrastructure is also likely to be one of the defining features of a Burnham government. Few politicians are more closely associated with transport reform, having made the expansion of Greater Manchester's Bee Network a central part of his mayoralty. Burnham has long argued that reliable and affordable public transport is essential to economic growth, labour market mobility and regional productivity.

For the infrastructure sector, this is likely to translate into increased support for integrated transport systems, greater powers for regional authorities over buses and local rail services, and a renewed emphasis on connectivity between towns and cities outside London. Projects such as Northern Powerhouse Rail and wider rail modernisation efforts could receive fresh political backing as Burnham seeks to reduce regional economic disparities. Equally important may be reforms to local transport funding, with regional leaders potentially given greater control over long-term transport budgets and investment decisions.

For developers, improved transport connectivity could unlock new regeneration opportunities around transport hubs and town centres, supporting Burnham's wider ambition of creating denser, more economically vibrant urban areas. Taken together, transport policy appears likely to serve not only as an infrastructure priority in its own right, but as a key enabler of Burnham's broader programme of regional growth and regeneration.

What Should the Sectors Expect?

The defining feature of a Burnham premiership for the energy, infrastructure and development sectors would likely be the transfer of power away from Westminster and towards regional leaders.

Rather than viewing growth primarily through the lens of national policy, Burnham appears determined to use regeneration, infrastructure and housing investment as tools to unlock growth at a regional level. For those operating across these sectors, engagement with government may increasingly mean engagement with metro mayors, combined authorities and local leaders rather than relying solely on Whitehall. Under Burnham, regional government could become just as important as central government in shaping investment and development decisions.

What already seems clear, however, is that a Burnham government would seek to reshape where decisions are made and who gets to make them. For the energy, infrastructure and development sectors, that could prove to be one of the most consequential shifts in British policymaking in decades.

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