Burnham has the vision – now the construction industry needs the detail

By Monday, Andy Burnham could be walking into Downing Street with the most ambitious regional-growth agenda of any prime minister in a generation. He is set to be confirmed as Labour leader tpmorrow and sworn in as prime minister at the start of next week, in one of the fastest unscheduled handovers of power in modern British politics.

Remember, this is a man who was not even an MP a few weeks ago.

Business leaders have not had the time, or the necessary detail, to properly interrogate his promises. What they do know is that growth rhetoric, however persuasive, will not deliver the economic jolt this country needs.

The grand vision of a Burnham premiership is now familiar to our readers. Since his Makerfield by-election win, our coverage has tracked what his time as Greater Manchester mayor tells us about a likely agenda for housing, infrastructure and skills.

His speech on 29 June confirmed much of that: a No 10 North operation based in Manchester; the most ambitious council housebuilding programme since the post-war period; and his “biggest rebalancing of power” agenda based on devolving control of utilities, regeneration and industrial strategy to the regions.

In one sense, his focus on regional devolution to drive economic regeneration reflects views prevalent in the built environment sector. Building’s own Regen Connect campaign argues similarly that regeneration best succeeds when locally led. Homes England’s £46bn settlement, mayoral combined authorities taking on strategic planning powers and the revived focus on town-centre renewal all point in this direction.

That is why Burnham’s pitch excites many: he is no longer just arguing for devolved decision-making; he will soon have the authority to deliver it. 

But words spoken from a podium are not shovels hitting the ground. Arcadis’s Simon Rawlinson makes practical points: Burnham will have to rely on existing capacity across government to build momentum, and we are already into year three of a parliament that has lost the habit of delivery.

So Burnham’s success will depend on accelerating what is already in progress rather than creating a new pipeline. Big vision helps, but it requires a practical plan of action.

That is not a case against Burnham. Most in construction will recognise his argument as one they have been making for years. But it does mean his first couple of months in office will be watched more closely, and anxiously, than is usual for a PM’s honeymoon period. 

Words spoken from a podium are not shovels hitting the ground

Here are three early tests that could reassure industry. First, on the funding question for housing: Burnham has so far offered little detail on how his huge council housebuilding expansion programme will be paid for. He has referred to redirecting the £39bn affordable homes settlement – but if that disrupts funding rounds already pledged, it would prove unpopular in the affordable housing sector.

On his vision of housing-led town centre regeneration, development corporations have clear momentum as a delivery mechanism – not least through Stockport Mayoral Development Corporation and its £1bn investment programme – but industry will want to know how quickly this can be scaled up.

Second, on his plans for rail infrastructure: Burnham stated in June that he would revive HS2’s Birmingham-to-Manchester leg, funded through a Crossrail-style model spreading costs across central government, councils, businesses and landowners rather than the Treasury alone. As PM, he will be able to make that call himself rather than campaigning for it from the sidelines – and the industry will be watching for an actual decision rather than another review that kicks the can down the road.

Third, some detail around fiscal devolution: His speech made much of the need to rebalance power but, as commentators have noted, he did not commit to letting regions raise or retain their own revenue. The autumn Budget will clarify what he really means by devolution.

Beneath these specific questions, there is a more deep-rooted concern among industry leaders. They will be hoping Burnham does not repeat the missteps of the government he is about to lead. Ministers have form for raiding infrastructure budgets to plug funding gaps elsewhere, cancelling schemes such as the A303 Stonehenge tunnel in the July 2024 spending review, making more road cuts in the autumn Budget later that year, then slating further schemes for cancellation just last month to boost defence spending (pending consultation).

That stop-start decision-making is why many contractors, consultants and industry bodies – from Balfour Beatty and Turner & Townsend to the RICS – wrote to the incoming prime minister this month insisting he stick with the 10-year infrastructure strategy and its £725bn pipeline. It is a warning Burnham should understand, given how often he complained that Whitehall’s inconsistency held Greater Manchester back.

Compared with Starmer, Burnham is a relatable, charismatic leader – and that has got him where he is today. But from here on, he needs to avoid the careless policy mistakes of his predecessor and move fast on the detail behind his broad-brush plan for growth. His next steps will tell industry far more than his Manchester speech ever could.

Chloë McCulloch is the editor of Building