Prime Minister Andy Burnham is poised to introduce significant policy shifts this week, beginning with a stated commitment to ending rough sleeping. These upcoming decisions are expected to reveal the governing philosophy of his administration.
One key area of expected change involves the government's stance on oil and gas exploitation, with a new energy secretary set to oversee this portfolio. This potential shift could raise concerns among Labour MPs representing constituencies with strong Green Party support, and more broadly, could be perceived as a dilution of the government's commitment to net zero emissions.
Burnham also made a promise to address the cost of living crisis, with further details anticipated regarding a "breathing space" initiative for households facing financial strain. An extension of Manchester's £2 bus fare cap is being considered as a tangible measure, contrasting with the £3 cap proposed by Keir Starmer and Rachel Reeves. With energy prices showing an upward trend, action in this sector is also possible.
Miatta Fahnbulleh, a former minister and head of the New Economic Foundation think tank, has been involved in developing policy options. The New Economic Foundation advocates for more substantial cost of living measures, including rent controls and free bus travel for individuals under 25.
The broader question remains whether Burnham will articulate a comprehensive vision beyond specific policy announcements. He has indicated plans to explain how cost of living measures will be funded, suggesting a potential argument for rebalancing the tax system. This could involve a debate on whether income taxes are too high relative to wealth taxes.
Burnham has previously suggested raising tax thresholds, at least for basic rate taxpayers, while increasing capital gains tax. However, his commitment to Rachel Reeves's fiscal rules, which constrain debt and borrowing, indicates that any changes are likely to involve the "re-prioritisation" of existing spending rather than the introduction of new funds. Nevertheless, these spending decisions can reflect his intended approach to governance.
Burnham has set ambitious goals, pledging to move away from an era characterized by centralization, privatization, and de-industrialization, and to establish a new economic model. Just as his focus on rough sleeping aims to signal his priorities to party members, he will soon need to implement symbolic policies that communicate the economic realities of his administration to both voters and financial markets.