What new Prime Minister Andy Burnham means for business

Here are 10 things that we know so far. 

1. Tackling the high cost of living is a priority

Britain's seventh prime minister in a decade has declared a “10-year mission to raise people’s living standards”.

In his first speech in the job, he promised to give people more "breathing space" to help with their finances. He announced that VAT will be cut from household electricity bills.

2. Power planned to be spread out from London

The former Mayor of Greater Manchester has promised an extension of his political philosophy of ‘Manchesterism’. 

He plans to set up a new No 10 unit based in Manchester, and the aim is for regions to be handed more control in areas including housing and transport.

“We will bring about the biggest rebalancing of power our country has seen,” he has said.

3. Aim for stronger public control of water and energy

Burnham, a veteran politician who first became an MP in 2001, has said he wants "greater public control" of the water and energy sectors. 

He has not yet expanded on what this might entail, but it could follow the Greater Manchester bus network model where private operators bid to run services on a franchise basis, while local authorities control fares, timetables and routes. 

4. Plans for more council homes to be built

“We will build more council homes,” said Burnham, standing on the steps of No 10 on his first day as prime minister. The 56-year-old has promised the biggest council house-building programme "since the post-war period". 

He wants to protect green spaces from development by making more use of higher-density residential development in towns.

5. Rates of income tax, VAT or National Insurance will not be raised

All eyes will be on the Autumn Budget, when Healey will likely set out how the Burnham Government will balance tax, spending and borrowing.

The Prime Minister has said he will stick to Labour's pledge at the last election not to raise the main rates of income tax, VAT or National Insurance. 

6. Business rates could be cut

Burnham has promised to be a “pro-business” prime minister.

In an interview, he suggested business rates on warehouses could be increased to fund tax cuts for pubs and some high-street businesses. He also wants to raise the threshold at which business rates kick in, taking lots of small high street shops out of paying altogether.

Separate reports suggest he plans to reduce business rates for the hospitality sector by 20%.

7. “Sovereign manufacturing” capability preservation plans

The Prime Minister has positioned reindustrialisation as central to his economic vision. Burnham has said he wants more world-beating British manufacturers exporting to the world. 

“We need to safeguard sovereign manufacturing and production capability across the country in critical sectors like steel, defence, energy, food and farming,” he said.

8. The UK will not rejoin the EU – for now

Burnham said last year that he hoped to see Britain rejoin the EU in his lifetime. 

However, when launching his campaign to become MP for Makerfield, he shot down any suggestion of this happening during his premiership: "I'm not proposing that the UK considers rejoining the EU," he said. "I respect the decision that was made at the referendum."

9. High streets will become “symbols of Britain’s renaissance”

Burnham has pledged to “turn around towns, high streets and local centres, increasing footfall on the high street”.

He wants to make high streets “symbols of Britain’s renaissance” rather than symbols of decline – but the detail on how he will bring this about is yet to come. 

10. Outsourcing of government contracts pledged to be cut back

The Labour Government has already pledged to end the era of outsourcing public sector services “by default”, and Burnham has added his voice to this mission. 

According to reports, he wants to see “insourcing” of contracts, which would mean bringing more government contracts in-house.

Each year, some £400 billion of public money is spent on government contracts.