Burnham promises to ‘reindustrialise Britain’ amid speculation about oil and gas policy

Lauren Hurley / No 10 Downing Street

ANDY BURNHAM has pledged to begin “reindustrialising Britain” in his first speech as UK prime minister, while speculation grows over his oil and gas policy.

In his first speech since the resignation of Sir Keir Starmer, Burnham told an audience outside 10 Downing Street of his plans to “back British industry” through public procurement. 

Burnham stood down as mayor for Greater Manchester last month before launching an uncontested leadership challenge to replace the unpopular Starmer. Burnham has revealed little about specific policy decisions he will take as leader, but he has repeatedly attributed many of the UK’s social and economic problems to widespread privatisation and deindustrialisation throughout the 1980s. 

“In the 1980s, Britain took some wrong turns,” he said yesterday. “We will make this moment a circuit breaker for Britain, bringing forward the biggest changes in the last 40 years.”

Speculation grew over the weekend about Burnham’s offshore policy after deputy Labour leader Lucy Powell told the BBC that “North Sea gas and oil is an important part” of the energy transition. Burnham will take “a more pragmatic approach” with offshore operators “to make sure that it can contribute to that transition and to the mix that is needed over the long term”, she added.

Burnham has replaced energy secretary Ed Miliband, a staunch opponent to new drilling, with Miatta Fahnbulleh, a former undersecretary in the Department for Energy Security and Net Zero (DESNZ). 

Before her election to parliament in 2024, Fahnbulleh led the New Economics Foundation thinktank, whose current environment policy lead said in April that “scraping the North Sea…for the last of its planet-heating fuel is no longer a solution” to achieving energy security. Under Fahnbulleh’s leadership, the group campaigned against new exploration licences, which subsequently became Labour party policy. Burnham has confirmed he will uphold the ban.

Burnham did not refer to the North Sea or specific industries in his speech yesterday, nor did he mention the green economy or energy transition. The overall direction of his energy policy will become clearer in his “10-year plan” published later this year, as well as an imminent ruling from Fahnbulleh on whether to give final go-ahead to the Rosebank and Jackdaw oil and gas developments, which have been delayed by legal challenges.

New tech

While Burnham did not specify what “reindustrialising” will entail, he has previously supported the HyNet carbon capture, utilisation and storage (CCUS) cluster in Northwest England and North Wales, describing the programme as a “fantastic opportunity for the region”. He also said Greater Manchester had “big ambitions to hit net zero from 2038”. 

Sir John Lazar, president of the Royal Academy of Engineering, said: “The benefits of industrialisation don’t have to be a thing of the past. The UK’s strengths in emerging technology areas such as AI, quantum and clean technology can and should be built on, so that technology improves lives in all parts of the country.”

Burnham has appointed the UK’s first-ever minister for AI, but abolished the Department of Science, Innovation and Technology. 

Lazar added: “There are real challenges for the new government when our competitors in other countries are forging ahead with implementing advanced technologies, particularly AI, to improve productivity. Our latest research shows that over half of UK engineering and technology firms have not yet adopted any of these potentially beneficial technologies. 

“This needs to be tackled to really unleash potential growth, which is something our network of engineers and innovators are ready to help with.”