In May 2025, amid growing dissatisfaction with then-Prime Minister Keir Starmer’s Labour government, high-profile figures from the party, campaign groups, and media convened at London’s Ministry of Sound for a day of discussions on child poverty, media ownership, and the rise of the radical right. The event, organised by the left-leaning campaign group Compass, highlighted internal concerns about Labour’s direction under Starmer, especially its support for Conservative welfare cuts, Tepid stance on Gaza, and rhetoric echoing right-wing themes on immigration.

Greater Manchester Mayor Andy Burnham closed the event with a speech that marked a clear departure from Starmer’s approach. Identifying decades of privatisation since Margaret Thatcher’s government as a root cause of Britain’s socio-economic challenges, Burnham proposed a Labour agenda focused on tangible improvements to living standards rather than adopting conservative-inspired narratives. Neal Lawson, Compass founder, described Burnham’s address as signaling prime ministerial ambition and intellectual clarity absent from Starmer’s leadership.

Although Burnham was not a member of Parliament at the time and had no immediate pathway back to Westminster, political momentum gradually shifted in his favour. By May 2026, the Labour MP for Makerfield, Josh Simons, announced his resignation, opening the door for Burnham to contest a by-election. Simultaneously, the Joseph Rowntree Foundation (JRF) and the New Economics Foundation (NEF) published coordinated proposals advocating rent controls, complementing earlier research from the Institute for Public Policy Research (IPPR).

Burnham’s early tenure as prime minister has been marked by a series of policy announcements aimed at easing the cost of living crisis. Measures have included cuts to energy bills and bus fares, pledges to reduce homelessness, commitments to expand council housing, and plans to reform adult social care. Labour MP and economist Yuan Yang described the mood in Parliament as notably more optimistic than in previous years.

However, uncertainty remains regarding the overall direction and radicalism of Burnham’s government. Lacking a formal leadership contest or comprehensive general election manifesto, key initiatives have been softened: for example, only 60% of funding for new council homes outside London will support social housing, a political donations cap originally set at £500,000 has been abandoned, and terminology around “public ownership” has shifted to the more ambiguous concept of “public control.” Observers like University of Manchester emeritus professor Karel Williams note that Burnham has become a “screen” onto which various Labour factions project their expectations, making it difficult to predict his prioritised agenda.

Burnham has nonetheless branded himself the most radical prime minister since Thatcher, explicitly challenging neoliberal policies of the past four decades. His willingness to critique privatisation reflects an emphasis on substantive political ideas, contrasting with Starmer’s more cautious style. Think tanks and advocacy groups within Labour’s left have accelerated efforts to influence government policy as the MP-led Labour Growth Group warns of a “ticking clock” to address threats from a revitalised global right-wing movement.

Among intellectual contributors to this shift is Mathew Lawrence, founder of the think tank Common Wealth, whose concept of “Manchesterism” outlines an economic model blending public ownership of essential services, regulated private enterprise, and innovation-driven startups supported by government. Though not formally part of the government, Lawrence’s ideas have found receptive audiences among senior officials, including Ed Miliband, secretary of state for energy security and net zero, and his successor Miatta Fahnbulleh.

Fahnbulleh’s department reflects the interconnected network of left-leaning policy experts drawn from organisations like IPPR and NEF. Former advisers including Carys Roberts, George Dibb, and Arthur Downing contribute to shaping industrial and energy strategy. Downing, now a strategy director at Octopus Energy and founder of the Haldane Society discussion group, advocates for the re-nationalisation of energy networks, describing privatisation as a form of “self-loathing” that undermines public confidence in government stewardship.

As Burnham’s administration prepares to unveil its budget and long-term strategic plans for Britain, policymakers and activists remain divided but united in the belief that transformative economic and political reforms are urgently needed to restore social equity and democratic vitality. The coming months will test how far Burnham is willing and able to depart from the legacy of four decades of neoliberal governance and chart a new course for Britain’s future.