Burnham to Announce New Public Body for Electricity Grid Investment

Andy Burnham is set to announce the formation of a new government body, the Great British Grid, intended to invest in Britain's electricity network and speed up connection projects. The proposal, slated for unveiling in his first party conference speech as Labour leader on Tuesday, aims to increase competition for grid connection projects.

Burnham plans to position this initiative as central to a broader goal of aligning UK energy costs with those in other European nations within a decade. He is also expected to outline funding for an NHS-style social care system for England, which he announced over the weekend.

The Great British Grid is envisioned as the first significant step in Burnham's agenda for greater public control over utilities. The Labour party stated that the new body would invest in and compete for transmission connection projects, alongside the three private companies that currently manage the UK's grid. Additionally, it would assist companies in financing their own connection infrastructure, with the Great British Grid potentially co-investing.

Funding for the Great British Grid is expected to come from the existing budget of GB Energy, a public green investment company established by Labour last year. Burnham is expected to frame his speech as an "honest conversation" with voters, themed around "hope."

The announcements come ahead of a challenging budget, with recent increases in UK borrowing costs narrowing the government's fiscal flexibility. The funding mechanisms for the social care plan, which Labour aims to roll out from 2030, remain a point of discussion. Chancellor John Healey has declined to guarantee that the state pension's "triple lock" uprating policy will feature in the party's next election manifesto, a policy that ensures annual increases based on inflation, wage growth, or 2.5%, whichever is highest.