Andy Burnham will today be confirmed as the new UK Prime Minister. The former Greater Manchester Mayor succeeds Sir Keir Starmer, following his resignation on 22 June.  

Experts from across a wide range sectors within Browne Jacobson react to a major political change for Britain and what this may mean for key segments of the economy.  

On PPPs and public infrastructure investment 

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.” 

Browne Jacobson has partnered with the CBI to publish a report, Pipeline to Progress: Making UK Infrastructure Investable, which sets out a blueprint for a modern PPP framework. Read the press release here.  

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 defence spending 

Tom Saunderson, Corporate Partner specialising in the defence sector, said: “Defence is one of the most pressing issues Burnham inherits, with his predecessor's proposals taking spending to only 2.7% of GDP by 2030, well short of both the government's own stated ambition of 3% in the next Parliament and the new NATO minimum target of 3.5% by 2035, and representing a reported £28bn shortfall.  

“Burnham is right that the spending commitment must be accompanied by genuine procurement reform, but the challenge runs deeper than political rhetoric has so far acknowledged.  

“The MoD has long defaulted to buying well-defined programmes from established primes, leaving innovative SMEs and scaleups trapped in a vicious cycle. Without meaningful multi-year contracts, private capital will not invest, and without investment, they can’t scale to the point where they can win major MoD work.  

“The Strategic Defence Review (SDR) called for 'root and branch' reform of procurement and the creation of UK Defence Innovation with a £400m annual budget, representing positive steps. A Burnham government should treat the SDR's reform agenda as a cornerstone of its wider industrial strategy, not a departmental footnote.  

“Streamlining accreditation, enforcing fair payment throughout the supply chain and ringfencing multi-year contracts for innovative scaleups would send an unmistakeable signal to private capital that UK defence technology is both valued and viable.  

“The capability gaps in our armed forces are pressing now. A credible plan for how defence spending is deployed across equipment, personnel, cyber and the industrial base matters just as much as the headline percentage.” 

On renationalisation of energy, water and transport  

Zoe Stollard, Partner in energy and infrastructure, said: “Andy Burnham has been clear that he wants stronger public control over energy, framing it alongside water and transport as part of making life more affordable for people. 

“The energy sector will be watching closely. Outright nationalisation of energy companies would be extraordinarily expensive and legally complex – compensation obligations under both domestic and international investment treaty frameworks would be significant.  

“But a model that stops short of full public ownership, instead imposing tighter regulatory control, licensing conditions or public equity stakes, is far more legally deliverable.  

“The energy industry needs long-term investment signals above all else. Regulatory uncertainty, even before a formal policy is announced, risks chilling the very private capital that the transition to net zero depends on.  

“A Burnham government will need to move quickly to clarify its model, or risk a standstill in investment decisions that the sector cannot afford.” 

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.” 

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 adult social care reform and neighbourhood working  

James Arrowsmith, Partner specialising in social care, said: “Andy Burnham has made it clear he wants to move quickly on adult social care. This may involve an acceleration of the Casey Commission's work, with a view to bringing forward a report on changes that can be made at pace to be published later this year. 

“Integrating only health and care is not enough, with Greater Manchester one place where we have seen a wide range of policy levers used to improve outcomes. We expect Burnham’s government, leveraging recommendations in this first phase report, to investigate the wider determinants of health and care outcomes. This would likely recognise, as we’ve seen in Manchester, that factors such as employment and housing have a significant impact on care. 

“The likely continuation of local government reorganisation as a priority policy stream will help to bring together a broader set of local services that can facilitate this more holistic approach to care. 

“Greater Manchester and The North West are also home to local authorities often held up as exemplars of neighbourhood working, which can reduce avoidable emergency admissions, support earlier intervention and ease pressure on acute services when done well. 

“This suggests greater devolution of power and budget to places and regions can facilitate a better joined-up approach at local level to develop responses to care needs, rather than simply prescriptive guidance. That devolution has formed one of Burnham’s first major policy positions is therefore unsurprising. 

“A ‘Manchesterism’ approach may also involve care treated as an essential public service that isn’t well suited to treatment as a market, similar to his statements on utilities and transport. How this will play out through the reform agenda is less certain. We have seen concerns raised in relation to unintended consequences of profit caps and a wider readjustment of the public sector/private sector relationships in care is a complex proposition. Unlike in the case of utilities, there are significant questions around how to balance prevention and response, with a strong argument to do more on prevention as a priority. 

“Having expressed a willingness to take on difficult decisions, Burnham’s arrival in Number 10 signals the prospects for radical reform are increased, headlined by upstream interventions, potential new funding models and a roadmap towards an NHS-style care service. 

“What may be challenging is timing constraints, which may make it difficult to show tangible outcomes, not just costs, ahead of the next general election. With so much civil service capacity already committed to local government reorganisation and children’s social care, there’s also a question of who is going to steer such a transformative agenda.” 

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 vocational training and apprenticeships  

Emma Hughes, Partner and Head of HR Services, said: “Andy Burnham has been emphatic that he wants an education system offering 'a path for everybody, academic and technical in equal balance,' with more work placements for 16 to 18-year-olds and guaranteed apprenticeships.  

“For employers, particularly those in sectors such as healthcare, construction and manufacturing where there are acute skills shortages, this can help usher in a new generation of talent into the workforce.  

“The Milburn report provides an important backdrop here. With the number of young people not in education, employment or training topping one million for the first time since 2013, and the cumulative annual cost of youth inactivity estimated at £125bn, the scale of the challenge that Burnham inherits could not be starker.  

“The review's finding that the most consistent complaint from young applicants is not rejection but silence is a damning indictment of how some employers are managing that experience. Burnham's commitment to guaranteed work placements needs to be matched by a serious conversation with employers about simplifying entry-level recruitment processes and reducing reliance on the automated screening tools that disproportionately lock out first-time applicants. 

“The challenge has always been that rhetoric around parity of esteem for vocational routes has never been matched by funding parity or employer incentives. If the new Prime Minister follows through, it will have direct implications for apprenticeship levy policy, further education funding and the shape of public sector workforce planning.  

“On a related note, Burnham has indicated he wants to reconsider the employer National Insurance increase introduced by Rachel Reeves, describing it as 'the wrong decision.' A partial reversal would be welcomed by employers in the social care, retail and hospitality sectors, where businesses have absorbed significant cost pressures since the 2024 Budget.” 

On supporting higher education amid financial pressures

Nathalie Jacoby-Danesh, Partner in the higher education team at Browne Jacobson, said: “Andy Burnham has spoken powerfully about putting universities at the heart of local economies, and his track record in Greater Manchester reflects this, spearheading the Greater Manchester Civic University Agreement with an ambition to drive social and economic change in the region.  

“But much of his focus for post-16 education has been on young people who don’t go to university, which he makes plain shouldn’t be the only route for school leavers. While creating an inclusive education system that broadens opportunities for young people and targets specific skills gaps should be a priority for government, there may be concerns within the education system about how this narrative is framed given its current fragile state.  

“Universities have faced wave after wave of financial pressure, and in the process they have also taken a reputational battering. The tuition fees debate became another opportunity for commentators and politicians to position themselves against universities rather than alongside them.  

“The sector deserves a Prime Minister willing to break that cycle by working in genuine partnership with the sector to solve structural challenges while ensuring work, training, apprenticeships and degrees are pathways of equal standing.  

“A good starting point for supporting universities would be to stop treating international students as a migration statistic to be managed down, but recognising they are people who choose to invest in our universities, cities, towns and businesses.  

“With new research from the Higher Education Policy Institute finding they will generate a net economic benefit of £40.4bn over the course of their studies, it’s time to abandon the proposed international student fee levy and protect the graduate route visa. This would provide an immediate, concrete signal that this government is serious about supporting universities as part of its wider growth agenda.” 

On education funding, SEND and parental complaints 

Mark Blois, Partner in education, said: “Our School Leaders Survey paints a candid picture of a sector that remains frustrated with government policy. While sentiment has improved during Labour’s second year, this comes from a low bar with only one in five school leaders actually satisfied. That is not a ringing endorsement. 

“The most pressing issue is money. Only 27% of leaders have any confidence in their financial security over the next three years – and when the majority of a school's budget is spent on staff, financial pressure and staffing pressure are one and the same thing. The reforms set out in the schools white paper are ambitious and the direction of travel on SEND is broadly right, but more than two-thirds of leaders do not believe the funding announced is sufficient to bring the government's ambitions to life. Ambition without resource is just aspiration. 

“Beyond funding, there is an operational crisis taking hold in school leadership that rarely gets the attention it deserves. Nine in ten school leaders say parents are escalating complaints far more quickly than two years ago – and increasingly those complaints are arriving AI-generated, longer, more legalistic, and with less appetite for dialogue. 

“Almost a quarter of schools have lost staff as a result, and nearly half report that staff have considered leaving. The white paper acknowledges this problem, which is welcome, but the sector needs enforceable mechanisms rather than just guidance. 

“Andy Burnham inherits a sector that wants to work with government, not against it. But the goodwill is conditional on adequate funding, workable reform and a genuine recognition that school leaders are already operating at their limit.”