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UK's likely next leader Burnham to unveil plan to shift power from London

Published by Global Banking & Finance Review

Posted on June 28, 2026

3 min read

· Last updated: June 28, 2026

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Burnham to Outline Plans for Devolving UK Power From London to Regions

Andy Burnham's Vision for Regional Power and Economic Reform

Burnham's Political Rise and Leadership Prospects

LONDON, June 28 (Reuters) - Andy Burnham, the Labour lawmaker expected to replace Keir Starmer as British prime minister, will outline his vision for Britain on Monday, his office said, promising to change how the nation is governed with power moving from London to the regions.

Burnham, who returned to Westminster earlier this month after winning a parliamentary seat, is currently the only declared candidate to take over from Starmer and could be installed in Downing Street within weeks.

Starmer announced last week he would step down, just two years after winning a huge parliamentary majority for Labour, as his popularity sank.

Devolution and Flagship Proposals

Burnham, who rose to prominence as mayor of Greater Manchester and has been dubbed the "King of the North", will use Monday's speech to make devolving power to regions and local communities his flagship proposal.

He will also commit to a 10-year mission to raise living standards through reindustrialisation, housing, infrastructure and reform of utilities. The focus would be not just on who governs Britain, but on changing how it is governed, his office said.

He will set out how he plans to "lift Britain back up to where it should be" and provide the "circuit-breaker it needs", alongside a pledge to reform public procurement to better support British jobs and industry.

Party Support and Political Challenges

If he takes office, Burnham will become Britain's seventh prime minister in a decade, with many in his party believing only he has the charisma and the vision to connect with voters and counter the rise of Nigel Farage's anti-immigration Reform UK party.

Economic Constraints and Fiscal Policy

Fiscal Pressures Limit Scope

However, with Britain's economy struggling from the impact of the war in Ukraine and more recently the energy shock of the U.S. conflict with Iran, the scope to make radical spending changes is limited.

Burnham has previously said the government should "get beyond this thing of being in hock to the bond markets" but later said his comments had been misrepresented. He has also stepped back from earlier calls for large-scale nationalisation or a near-term return to the European Union.

Commitment to Fiscal Rules

Housing minister Steve Reed said on Sunday Burnham would stick to Labour's commitments made before the 2024 election and also to the government's fiscal rules, including balancing day-to-day spending with tax revenues and reducing debt as a share of output.

"When it comes to the fundamentals, Andy has been clear he will stick to the fiscal rules that have delivered this country stability in the economy for the first time in over 15 years," he told Sky News.

Reporting Credits

(Reporting by Michael HoldenEditing by Ros Russell)

Key Takeaways

  • Burnham aims to shift ‘financial devolution’ to regional mayors, including control over taxes, budgets and public services, signaling serious structural change.
  • He plans a decade‑long mission to raise living standards via reindustrialisation, housing, infrastructure, utilities reform and reshaping public procurement.
  • Despite ambitious goals, he insists on sticking to Labour’s fiscal rules and balancing spending with revenues in a constrained economic context.

Frequently Asked Questions

Who is expected to replace Keir Starmer as the UK prime minister?
Andy Burnham, a Labour lawmaker and former mayor of Greater Manchester, is expected to succeed Keir Starmer.
What is Burnham's flagship policy proposal?
Burnham's main proposal is devolving power from London to regional and local communities across the UK.
How does Burnham plan to improve living standards?
He will launch a 10-year mission focusing on reindustrialisation, housing, infrastructure, and utility reform.
Will Burnham make radical fiscal changes?
His scope for spending changes is limited due to economic pressures, and he intends to stick to Labour's fiscal rules.
What is Burnham's stance on nationalisation and the EU?
Burnham has stepped back from calls for large-scale nationalisation or a quick return to the European Union.

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