Burnham Pledges Public Control of Key Services, Signals Shift on Pensions

Prime Minister Andy Burnham is set to outline proposals for greater state control over essential services, including water, energy, and housing, during the Labour Party's conference. "We can't go on as we are," Burnham is expected to state, advocating for the state to take "more control of the basics."

Mounting speculation suggests that Burnham may also signal an end to the pensions triple lock to help fund an £18 billion reform of social care. Chancellor John Healey declined to commit to maintaining the triple lock beyond the next election, despite warnings that such a move could increase pensioner poverty.

Burnham's speech is anticipated to include a renewed focus on strengthening ties with the European Union. He is expected to acknowledge that not all aspects of his plan will garner universal agreement but will assert a determination to provide "less drift and more direction" following what is described as a "disastrous reign" under Sir Keir Starmer.

He plans to "sweep away the flawed thinking of the last 40 years," arguing that "politics–as–usual has taken Britain backwards." This intervention comes amidst other indications from the party, including Shabana Mahmood signaling a potential shift on migrant residency claims and Healey warning of fiscal constraints.

Burnham aims to establish a new, "free" social care system by 2030. Meanwhile, Foreign Secretary Ed Miliband has characterized the UK as "proud Europeans" whose future lies in a "stronger, deeper partnership with the European Union."

Concerns have also been raised about potential changes to fuel duty, with ministers reportedly urging the Chancellor to reconsider Labour's plan to increase it by 7p per liter next year, especially as diesel prices reach record highs. Energy Secretary Miatta Fahnbulleh has also reportedly abandoned Labour's pledge to reduce electricity bills by £300, and Wes Streeting is encouraging activists to drop their opposition to increased defense spending.

While renationalization of railways is already underway, Burnham is expected to signal further government intervention in sectors like water, energy, and housing. There is a possibility that Thames Water could be placed in a "special administration scheme" if its bailout plan falters, effectively returning the company to public ownership. However, full-scale nationalization of major utilities is considered unlikely at this stage due to significant costs, with ministers exploring alternative intervention methods such as appointing elected mayors to lead regional oversight boards.

Burnham will argue that the country is currently "run for vested interests, not in the public interest, with power held in too few hands." He contends that the state needs "more control of the basics so that we can make it more functional again." This aligns with existing pledges to construct new council houses and proposals from Communities Secretary Angela Rayner allowing councils to seize empty private homes after six months.

Burnham, while still technically adhering to Labour's 2024 manifesto, intends to present his plans as a "more serious prospectus for Britain than people have been offered in a generation."