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A sixteen year Odyssey ends. Burnham reaches Ithaca. Who will be Burnham’s Eurylochus and what will this mean for UK PLC?

Our Senior Account Manager Christopher Herman takes a deep dive into the latest developments following Burnham’s move to No.10, with a particular focus on his new cabinet and what it means for business. Sixteen years in the waiting and he has finally met his lifetime ambition. The question now is whether he will succeed in turning around the trajectory of government, tackling the cost of living and allowing UK business to grow the economy.

This week we have witnessed one of the finest traditions in UK democracy. It was the smooth and peaceful transition of power as Starmer was chauffeured up to Buckingham Palace to hand in his resignation, followed by Andy Burnham stepping forth outside the black door of Downing Street, lecternless, to address the nation for the first time as Prime Minister.

 

Burnham took this moment to proclaim that it will be a “circuit breaker” moment for British politics and that he will bring forward the biggest changes in the last forty years, including the cessation of rough sleeping. A £340m pledge with details and costs we are still awaiting. This will remind some of the great Agamemnon of Prime Ministers, Gordon Brown, who drove rough sleeping to record lows by the time he left office in 2010 through the Rough Sleepers Unit and a cross department approach that focused on prevention as much as rescue. Burnham as Prime Minister will be restricted by the contents of his predecessor’s 2024 manifesto. He will be forced to strap himself to the mast of the vessel of government to avoid any movement towards the new policy sirens. This action will be met with fierce allegations that he has no mandate to do such a thing and the chorus demanding a General Election will not take long to warm up.


So far policy wise his statements are in line with the 2024 manifesto but with greater emphasis on the issues he cares about. Homes, devolution and utilities with additions that are now part of our public consensus thrown in for some extra seasoning such as armed forces spending commitments and support for Ukraine. This will do much to put to rest the furor of the commentariat who have given much kudos to his domestic agenda but have expressed concern on whether he has the vision for the global arena. It appears at least that he has initially taken it up in his own unique way with a personal invitation to Donald Trump to visit Manchester.


The culling of the preceding cabinet members shocked the SW1 village as it was considered by many to be quite bloody and factional. It was the slaying of suitors as Odysseus returned to the halls of Ithaca. Some had thrown a few final punches as they left office, most notably former MHCLG Secretary State Steve Reed MP as he spoke of loyalty and stated that he hopes many of Burnham’s new team will show more loyalty to Burnham than they did under Keir Starmer. Another was Darren Jones who posted on X, formerly known as Twitter, that the VAT cut on energy bills is a way for consumers to save a few quid but that it is crucial for this government to set out how their policies are costed at the next budget. He made the accusation that policies are being funded by cutting unfunded policies such as Digital ID.


There were some big surprise appointments, none more prominent than former Defence Secretary John Healey coming in as Chancellor of the Exchequer. This is considered a bold move by practically everyone. It provides further reassurance to the armed forces and those national defence wonks who worry about Britain’s preparedness to defend itself. More important than this is that Healey is a seasoned politician who has treasury experience under Gordon Brown during Labour’s last stint in government. He will be a safe pair of hands who will do much to boost UK PLC and push back on some of the more radical and less fiscally responsible members of government.


Another interesting choice is Miatta Fahnbulleh as Energy Security and Net Zero Secretary. She is the first MP from the 2024 intake to reach the lofty heights of Secretary of State. She proved to be one of the most effective and talented new ministers to date, impressing industry and think tankers alike in both DESNZ and MHCLG. In spite of being considered one of Miliband’s prodigies, a minister not known to enjoy engaging with business, she has historically been incredibly proactive in engaging with industry. She will be a Secretary of State to keep an eye on.


Other than that we have witnessed a return of a number of Burnham allies, largely from the greater Manchester area. Most interestingly is Jonny Reynolds returning to Secretary of State for Business following a stint as Chief Whip for Keir Starmer. Many in the business community had great admiration for Jonny Reynolds, someone who took the time and made the effort to win over business. Many in industry feel that Peter Kyle was not able to fully fill his shoes. Rayner returning to MHCLG was expected and it is considered that she will lay an amount of the blame for slow building of homes on her predecessor Steve Reed. Louise Haigh, the chair of Burnham’s leadership campaign and his Eurylochus, takes the role of First Secretary of State and Chancellor to the Duchy of Lancaster which will make her one of the most powerful figures in Burnham’s administration. She will have oversight across the government to ensure delivery. Anecdotally she is the first female First Secretary of State since her hero Barbara Castle in 1968.


Burnham’s team is now in place and ready for action. For his government to deliver and overturn a difficult two years they will have to do what all good classical heroes do. They must go forth like Heracles, Theseus, Orpheus, Aeneas and Odysseus by crossing the five rivers of Hades to communicate and demonstrate that they are tackling the cost of living crisis and supporting UK businesses in growing the UK economy. They have an epic journey ahead of them and the public’s trust, confidence and sympathy for them is at a historic low. Only time will tell if they are successful in this quest.

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