Burnham plans to ‘rewire’ British state to improve people’s lives across UK

In his first major speech since Sir Keir Starmer announced he would be leaving Downing Street, Mr Burnham promised to give people hope for the future.

The Makerfield MP, who gave up being mayor of Greater Manchester to return to Parliament in a by-election earlier this month, said they Westminster system was “broken” and “as a result, the country isn’t where it should be”.

“It is stuck in a rut, and clearly we can’t go on like this,” he said.

Mr Burnham, who could become prime minister on July 20 if he is the only contender to replace Sir Keir as Labour leader, said:

– The No 10 North operation would be the “nerve centre of a rewired Britain”, redistributing power and resources across the UK.

– It would oversee the “biggest council house building programme since the post war period”.

– As well as housing regions being able to take “greater public control of essential services” including water, energy and transport.

The proposals would bring about the “biggest rebalancing of power our country has seen”, Mr Burnham said as he promised to overcome Whitehall’s resistance to change.

“Let me say this very directly: the days of Whitehall fighting the devolution of power into the regions and nations are over for good.”

In an attempt to reassure the markets that he would not hike borrowing and taxes to pay for his plans, Mr Burnham promised his measures would be based on “the stability that comes from sound public finances” and “the discipline of our current fiscal rules”.

But he acknowledged that taxpayer-funded support would be needed to deal with the cost-of-living pressures facing households.

“Ours is a 10-year mission to raise people’s living standards,” he said.

“I know people can’t wait forever for change.

“I heard on doorsteps in Makerfield how people need a bit extra now to help with rising costs.

“I will do my very best to deliver it, and whilst not taking risks with the public finances, will seek to give Britain some breathing space as soon as I can.

“People need to be able to look forward to a night out or a holiday with the kids. People need hope.”

Promising to support reindustrialisation across the UK’s regions, he said Whitehall would be ordered to back British firms bidding for public contracts – even it this cost taxpayers more.

“For too long, UK public procurement policy has been based on chasing cut-price deals around the world rather than helping our own British-based suppliers become more stable and competitive,” he said.

With Mr Burnham under pressure to seek his own mandate at a general election, he insisted his plans were consistent with the manifesto Labour campaigned on in 2024 despite being “the biggest change in our lifetimes to the way the country is run”.

In Westminster, Mr Burnham said he would reach out to other parties to create a “greater sense of unity” in place of the “fragmented, disjointed” political environment he said he had found on his return to Parliament.

Mr Burnham, dressed in a dark t-shirt and jacket rather than the usual politician’s uniform of a suit and tie, did not take questions from the journalists at the speech in Manchester’s People’s History Museum, leading to accusations he was dodging scrutiny of his plans.

Unless he faces a rival for the Labour leadership, he will become prime minister on July 20, when Parliament will be on its summer break.

Tory leader Kemi Badenoch said: “He needs to come to Parliament, tell us what he wants to do and face some questions from MPs, the people elected to hold the Government to account.

“Giving speeches in Manchester and not taking any questions is simply not good enough.”

Confederation of British Industry chief executive Rain Newton-Smith said businesses could get behind Mr Burnham if he followed the “positive, dynamic and collaborative approach that has helped public and private sectors drive growth in Manchester” at a national level.

But she warned “proposals for greater intervention in markets such as transport and utilities must avoid deterring investment”.