What Could Andy Burnham Mean for UK Energy Policy?

Following Sir Keir Starmer's surprise resignation, attention is rapidly turning to who could lead both Labour and the country next. With nominations set to open on July 9, Andy Burnham has emerged as the clear favourite and could potentially become Prime Minister without a contested leadership race.

For the energy sector, a Burnham premiership would likely bring continuity in some areas and change in others. Burnham has previously expressed support for Labour's Clean Power 2030 agenda and is widely expected to back key policies such as Great British Energy. As Mayor of Greater Manchester, he also championed a local net zero target of 2038, signalling broad support for the UK's long-term decarbonisation goals.

One area that could see a different approach is energy affordability. Burnham has advocated removing green levies from electricity bills and funding them through general taxation instead. Supporters of the idea argue that it could reduce household energy costs while helping to lower inflation.

There is also growing discussion around the future ownership and governance of essential services. Burnham has repeatedly argued for stronger public control of utilities and has pointed to Greater Manchester's bus franchising model as an example of how services can remain privately operated while being publicly overseen. He has also spoken in favour of public ownership in specific cases, including struggling water companies.

Energy bills featured prominently in Burnham's recent political messaging. Following his victory in the Makerfield by-election, he said the UK needed to bring down "water bills, energy bills, rail fares" to improve affordability for households.

Another area to watch is North Sea oil and gas policy. The current government has maintained its position of not issuing new exploration licences while allowing existing developments to continue. Burnham's past comments suggest he may take a more flexible approach, having indicated he remains open to discussions around future North Sea development. While he has strongly backed net zero and clean energy investment, his position on domestic oil and gas production appears less firmly defined than some within Labour, raising the possibility of a different emphasis on energy security and economic considerations.

While the UK's clean energy transition would likely remain on course under Andy Burnham, the balance of priorities could shift. Alongside support for net zero and clean power, there may be a greater focus on lowering energy bills, reforming utility ownership models and increasing public oversight of critical infrastructure. As Labour prepares to choose its next leader, the energy sector will be watching closely for further details on how Burnham would translate those ideas into government policy.