The UK's new Prime Minister Andy Burnham is preparing for sweeping changes in energy and water policies before taking office. According to Bloomberg, Burnham has requested plans to allow new oil and gas drilling in the North Sea and to bring Thames Water into public ownership.
Drilling ban criticized by US set to be lifted
The outbreak of the Iran war and the rise in oil prices have increased the importance of North Sea reserves. The current Energy Minister Ed Miliband's resistance to new drilling on environmental grounds had been criticized by US President Donald Trump and the Reniupal organization, which includes representatives of the British energy sector. Burnham's team is reportedly considering various options, including approving new drilling at the Jackdaw gas field and Rosebank oil field off the coast of Scotland.
Thames Water to be brought under public oversight
Burnham's aides have asked civil servants to prepare a plan to bring Thames Water under public oversight. Among the planned options is placing the company under a "special administration" regime, a temporary nationalization process. Also under consideration is operating Thames Water, which serves 16 million customers in and around London, as a cooperative, providing services on a not-for-profit basis. This option is supported by many Labour MPs as it is less costly than nationalization.
Thatcher's privatization policies targeted
In his first speech as Labour leader, Andy Burnham targeted the policies of the Thatcher government of the 1980s. "Britain made a series of wrong decisions in the 1980s," Burnham said, referring to former Conservative Prime Minister Margaret Thatcher's privatization of many public companies. According to the Financial Times, Burnham argued that these policies "centralized political power and privatized essential infrastructure." Burnham said he plans to devolve powers from the government to cities, promising more authority for municipalities in housing construction and social housing.
Support for business and cabinet speculation
Burnham reiterated his support for business, saying, "As Labour leader, I will be a champion of business, just as I was when I was Mayor of Greater Manchester." Although he stated he would not announce ministers before taking over as prime minister on Monday, various speculations are circulating in the British media. According to the Financial Times, current Home Secretary Shabana Mahmood is expected to replace Rachel Reeves as Chancellor of the Exchequer. It is also anticipated that Ed Miliband will not continue as Energy Minister due to disagreements over energy policies.
