As Andy Burnham prepares to take the reins at 10 Downing Street, he faces a daunting array of challenges that will put his leadership and policy-making skills to the test. The weight of these immediate concerns is evident in the 'shit list' of pressing issues compiled by Labour officials, which has reportedly been shared with Sue Gray, the seasoned advisor who helped navigate Keir Starmer's predecessor through similarly treacherous waters.
The cost of living crisis stands as one of Mr Burnham's most pressing headaches. His team is weighing several potential measures to ease the burden on households, including a year-long rent freeze in the private sector, reduced bus fares, and scrapping green levies from energy bills – funded instead through general taxation. While these proposals aim to inject much-needed cash into people's pockets, they come with significant financial implications, prompting questions about how Mr Burnham plans to fund them within a tight fiscal framework.
Defence spending is another major hurdle, with a reported £4.7 billion shortfall in existing investment plans. As the Prime Minister weighs options for bridging this gap, he must also factor in inflationary pressures stemming from the Iran conflict and the costs associated with his cost of living measures and potential re-nationalisation of utilities – all set against a backdrop of already-strained finances.
The troubled Thames Water utility company demands urgent attention. Creditors are currently negotiating a £10 billion rescue package, but this has been met with opposition from some quarters, including the previous Environment Secretary Emma Reynolds, who cited poor value for taxpayers. Mr Burnham will need to make a swift decision on whether to support the rescue deal or opt for special administration, potentially paving the way for public control of the company.
Domestically, Mr Burnham faces immediate decisions on party funding and electoral reform. The postponement of the Elections Bill has left several contentious issues unresolved – including Labour MPs' proposed amendments to cap donations, ban cryptocurrency contributions, and establish an independent commission on electoral reform. These proposals will test Mr Burnham's stated ambition to transform the way politics is conducted.
Internationally, Mr Burnham must tackle the stalled 'reset' in relations with the European Union. A joint summit was postponed, awaiting discussions with the new Prime Minister. The key sticking point remains the EU's desire for the UK to offer European students the same fees as domestic ones – a proposal that has sparked tensions between London and Brussels.