Today, Keir Starmer resigned and Andy Burnham took his place as prime minister of the UK
Andy Burnham’s speech upon arriving at 10 Downing Street was given without notes, lending a more personal touch, but also meaning we had little in the way of figures or specifics.
The speech was rather brief in nature, as Burnham made the expected reassurances of bringing “the biggest change in 40 years” and highlighted his awareness of being the seventh PM in 10 years, as he prepares to take office from his predecessor, Keir Starmer.
Housebuilding was briefly mentioned
Towards the end of the speech, Burnham said that he would see to it that more council houses would be built, saying this is a “fair and sustainable” way to bring welfare bills down while also meeting fiscal rules and matching international expectations to maintain defence agreements.
Furthermore, of note to the construction industry, Burnham also announced his intent to overhaul the education system and mental health support system with the aim of getting more young people into work – possibly building on the skills camps Keir Starmer’s government introduced and potentially further boosting the numbers entering the construction industry.
Besides this, Burnham also alluded to:
- Continuing the devolution of power “to every postcode in the land”
- Re-industrialising for the benefit of industries that haven’t recovered since the 1980’s
- A new 10-year plan for the UK, coming later this year
- From tomorrow (21 July), beginning to lay out more immediate measures to bring down the cost of living and give the country “some breathing space”
Construction industry leaders react and make recommendations to the new PM
Federation of Master Builders (FMB)
Brian Berry, chief executive of the FMB, said: “With the fall in the number of new homes being built, Burnham needs to concentrate on rolling out a series of practical measures that will unlock the potential of the nation’s small builders, which should include diversifying the housing market; tackling the construction skills shortage; supporting the rollout of energy efficiency upgrades of existing homes; and creating the business conditions needed for small businesses to thrive.
“While recent years have seen welcome commitments on housing, planning reform, and economic growth, delivery is still lacking, and many small construction firms continue to face significant barriers, including rising costs, skills shortages, planning delays, and weak consumer confidence. Builders will be looking to the new government to match ambition with delivery and create the conditions that will allow SMEs to thrive. The UK cannot meet its housing ambitions without a diverse housing market, and that means giving smaller house builders a much greater role in delivering the homes the country needs, including through opportunities in the social and affordable housing sector.
“Greater progress is also needed to introduce a mandatory licensing scheme for domestic building companies to drive up standards and improve consumer confidence. Small building companies are rooted in their local communities and, if supported in the right way, stand ready to play their full part in delivering the homes, jobs and economic growth that are needed all across the country.”
Browne Jacobson
Craig Elder, partner specialising in public procurement, said: “Andy Burnham appears to recognise the importance of infrastructure renewal but, given the challenging economic environment he will have to operate in and the need to prove fiscal responsibility to the markets, one option will be to turn towards public-private partnerships (PPPs) – potentially in tandem with his drive for greater regional devolution.
“Having overseen the use of PFI in a hospital building programme while Health Secretary under Tony Blair’s government, Burnham is familiar with PPPs and as Greater Manchester mayor also worked cross-party with ex-West Midlands mayor Andy Street to explore how private finance could revive the HS2 link between Birmingham and Manchester.
“The good news is that reformed PPP models have been delivering worldwide since the UK scrapped PFI without a replacement, with Scotland and Wales pressing ahead with their own non-profit distributing and mutual investment models respectively to fund schools, hospitals and roads.
“These include features that learn lessons from some of PFI’s perceived drawbacks and can be built into modern PPPs, such as proportionate risk allocation, auditable social value and strengthened accountability. In what may be music to Burnham’s ears, there is also a significant role for mayors in creating the long-term project pipeline that gives investors the certainty they need.
“With the UK having the lowest investment in fixed assets within the G7 over the past 20 years – an issue that can’t be fixed through public spending alone – it’s time to finally reopen the PPP conversation.”
On devolution and the ‘Manchesterism’ models
Laura Hughes, partner and Head of Public Law, said: “Deeper devolution that gives mayoral combined authorities genuine control over powers and finances relating to portfolios such as further education is a core Andy Burnham policy.
“It reflects what he’s built in Greater Manchester, where he has acknowledged prevention is better than cure. He understands that unemployment among 16 to 24-year-olds is a major reason for escalating welfare costs and tackling this issue begins with better early years education.
“However, while it’s absolutely right that other areas should benefit from the additional powers given to Greater Manchester as part of the trailblazer devolution deal it secured, Sir Keir Starmer’s government had already introduced a process to enable the wholesale rolling out of these powers to strategic authorities via the English Devolution and Community Empowerment Act.
“Burnham may be able to accelerate the granting of additional powers to existing strategic authorities – and the creation of new ones – but questions remain on whether he is prepared to remove ringfencing around budgets so that mayors are given flexibility to make health interventions via education spending, for example.
“Real fiscal autonomy holds the key to devolution delivering meaningful change in areas such as transport, skills and housing. Without genuine control over taxation and revenue, local areas remain fundamentally dependent on the centre – and that dependency undermines the very accountability that devolution is supposed to create.
“The Treasury was already developing a roadmap for fiscal devolution ahead of the Spending Review 2027, including proposals to let localities retain more benefit from local economic expansion.
“Burnham should accelerate this work and be explicit that it extends beyond England. The asymmetry between the devolved nations remains a structural problem – Wales and Northern Ireland do not enjoy the same degree of fiscal devolution as Scotland, and that imbalance creates real tensions in the intergovernmental landscape that no government has yet resolved. Burnham has already ruled out reforming the Barnett formula.
“A genuine fiscal devolution settlement has to be a whole-UK conversation, not an English one conducted in isolation. Having spent a decade arguing that the centre holds too much power, the new prime minister is better placed than most to make that case. But he will need to grapple with the structural questions that have been ducked for too long.”
On place-based growth
Peter Ware, partner and head of government, said: “Freeports are one of the most underappreciated tools available to any incoming prime minister serious about regional growth and inward investment, and Andy Burnham should make an important part of his economic vision.
“Across the 12 designated English, Scottish and Welsh freeports, the evidence has been quietly accumulating with billions in landed investment, thousands of hectares of brownfield land brought back into productive use, and a pipeline of clean energy, advanced manufacturing and logistics projects that would have seemed implausible a decade ago.
“The government’s extension of the tax relief window to 2031 in England, and 2034 in Scotland and Wales, was an acknowledgement that the model works.
“Burnham’s instincts around place-based growth, devolution and levelling up the regions make him a natural champion of freeports. The alignment between freeport governance structures and the emerging local growth plans under the devolution framework is an opportunity to hardwire long-term investment ambition into regional spatial planning.
“Burnham should bring freeports back into the centre of the growth conversation, and articulate a joined-up vision in which freeports, devolution, planning reform and public infrastructure investment reinforce one another.”
On social housing
Gabor Taller, partner and co-head of social housing, said: “Burnham’s pledge to deliver the biggest programme of council house building since the Second World War is one of the most striking commitments of his campaign. He has suggested funding it by redirecting the existing £39bn affordable housing programme entirely towards social rent homes.
“While Burnham specifically references council house building, the role he envisages for registered providers in achieving this remains unclear – and the detail is yet to emerge. That is significant, because the latest figures show registered providers have delivered more social rented homes than in any year in the last decade, demonstrating both their capacity and commitment.
“Burnham speaks of a national housing-first approach and building the broadest coalition possible – pointing to the Manchester model and its record of successful cross-sector working. Registered providers stand ready to be a central part of that effort.
“The shift in funding focus towards social rent is understandable, but I would encourage government not to abandon shared ownership entirely. It has often been unfairly conflated in the press with leasehold and fire safety concerns, but in the right location it remains a positive and much-needed bridge into home ownership.
“The legal and structural challenges are substantial – local authorities need borrowing headroom, land, planning capacity and a sustainable long-term revenue model. Turning this vision into delivery will require a root-and-branch review of the local authority housing finance framework – something that has been neglected for far too long.”
On procurement changes
Anja Beriro, partner specialising in public procurement, said: “Andy Burnham’s instinct to bring key services such as transport and utilities back under public control will inevitably reshape the procurement landscape.
“Whether that means full nationalisation or the Greater Manchester ‘public oversight’ model – where private operators run services under tight public control – the legal architecture of how those contracts are structured, awarded and managed will be central.
“What’s encouraging is that the tools to drive local benefit are already here. The Procurement Act 2023 and the National Procurement Policy Statement published alongside it place a greater onus on contracting authorities to prioritise local supply chains, social value and community wealth-building when awarding public contracts.
“This is further supported by the Procurement Policy Note 024, published last month, which introduces a mandatory public interest test for all government service contracts above £1m that goes beyond cost to weigh up multiple factors including social value, accountability and in-house capabilities before deciding to outsource to the private sector.
“Burnham’s government will almost certainly double down on these expectations, making it even more important that public bodies understand how to use those levers lawfully and strategically. The question isn’t whether to embed local supply chain requirements, but how to do so in a way that withstands legal challenge and actually delivers on the ground.”
The Chartered Institute of Building (CIOB)
Dr Victoria Hills, CEO at CIOB, said: “We welcome the new prime minister into his role and look forward to working with the new government to help tackle the UK’s housing, infrastructure and skills challenges.
“Close engagement between ministers, professional bodies and industry experts will be essential to ensure policy is shaped by those delivering projects on the ground. We welcome the opportunity to meet with any new ministers to assist with their briefs and highlight the important contribution the construction industry can make in delivering positive outcomes for communities.
“There has long been a strong case for devolving more skills funding and decision-making to combined and local authorities as well as empowering mayors to work closer with local employers, educators and trainers to tackle local skills gaps and enable opportunities. CIOB has consistently acknowledged that regional leaders are best placed to understand local demand and the skills required to deliver priorities like retrofitting, housing and infrastructure. We look forward to continuing to work with Government as meaningful devolution takes shape.
“The industry also needs certainty. Changes in ministerial leadership and shifts in long-term policy impact businesses’ ability to plan, invest and recruit. We hope the new Prime Minister can provide stable leadership, honour long-term infrastructure commitments and work with the sector to give industry the confidence to deliver the homes, infrastructure and economic growth the UK needs.”
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