Andy Burnham delivered a pointed critique of Margaret Thatcher’s legacy during the Labour Party conference last week, framing the enduring influence of Thatcherism as the central challenge for his political agenda. Speaking on Tuesday, Burnham drew significant applause for his opposition to Thatcher’s policies on public ownership, particularly her ban on the nationalisation of water companies, positioning this stance as emblematic of Labour’s ongoing struggle to undo what he described as the "Thatcherite settlement."

Burnham acknowledged the context that led to Thatcher’s rise in 1979, noting that Britain faced high taxes, inflation, borrowing, and powerful unions that had contributed to economic stagnation. He credited Thatcher with recognizing the need for change and taking bold steps to move away from the post-industrial economic model. However, he also highlighted the lasting negative consequences of her reforms, such as widening regional disparities, the decline of traditional industries including mining and shipbuilding, and growing social atomisation. He argued that Thatcher’s privatization efforts, including the right-to-buy scheme for council housing, had contributed to long-term issues in essential services such as water and rail.

Burnham outlined his vision for a “more capable state” aimed at restoring functionality and affordability to basic utilities, signalling a potentially radical departure from the Thatcher era. He suggested the need for a pronounced realignment that challenges the established economic order and seeks to address inequalities left unresolved by both Thatcher and the subsequent New Labour governments of Tony Blair and Gordon Brown.

However, the speech also revealed potential risks in Burnham’s approach. Critics noted an absence of any mention of economic drivers traditionally associated with growth and innovation, such as entrepreneurs, start-ups, life sciences, biotech hubs, or London’s financial sector. This omission raised questions about how Labour intends to balance its focus on historic industrial regions with supporting the UK’s leading economic engines.

Burnham has previously characterised London’s economy as “overheated,” yet data suggests the capital’s growth has slowed recently. The London financial sector, which provides a significant portion of government revenues, has struggled to maintain its competitive edge globally. For example, the City of London saw only seven initial public offerings in the first half of 2026, raising £577 million, compared to New York’s 208 IPOs raising £102 billion over the same period. Revitalising the financial sector remains a crucial economic priority under many assessments.

In terms of future industries, Burnham’s emphasis on artificial intelligence (AI) was limited primarily to referencing an American firm’s innovation lab in Liverpool, raising questions about Labour’s strategy for supporting UK-based tech innovation hubs, particularly those concentrated in London.

On infrastructure, Burnham appeared sceptical about expanding London’s Heathrow Airport with a third runway, favouring instead increased capacity at Manchester Airport as part of a wider effort to rebalance regional economic development. Supporters argue that this fits with his agenda to reduce London’s dominance, though other analysts caution that Heathrow’s role as the UK’s globally connected airport hub is vital to maintaining the country’s international trade and investment position.

Burnham’s political formation has been heavily influenced by Thatcherism’s impact on northern England, and his approach reflects a desire to address the perceived social and economic harms of that era. Yet his critics warn that while reversing certain Thatcherite policies may be necessary, prioritising one region’s recovery at the expense of national economic competitiveness could replicate some of the mistakes of the past, underscoring the complexities facing Britain’s efforts to forge a balanced and inclusive economic future.