How Andy Burnham Could Shape the UK’s Net-Zero Agenda

Burnham’s net zero position: public control meets regional delivery

Andy Burnham has become leader of the Labour Party and is expected to take office as Prime Minister. His approach to net zero combines continued support for statutory targets with a marked shift toward public control of utilities and regional delivery. For UK businesses, this signals broad policy continuity but with important changes in how the transition is funded, governed, and enforced.

The core climate targets remain. However, the machinery behind them looks set to change considerably. Burnham’s track record in Greater Manchester shows a preference for state-led infrastructure investment over market mechanisms. That pattern is likely to scale nationally.

His position on North Sea oil and gas licensing introduces uncertainty. Meanwhile, his stated intention to bring energy and water under public control could accelerate grid decarbonisation but also reshape how businesses contract for power and access supply.

Track record in Greater Manchester provides policy blueprint

As Mayor of Greater Manchester since 2017, Burnham set a regional carbon neutrality target for 2038. That sits 12 years ahead of the UK’s statutory 2050 goal. The region has since launched electric bus routes, home insulation schemes, and local clean energy projects.

In June 2025, Burnham described the fossil fuel phase-out treaty as a “lifeline” and stated there should be “no turning away from net zero.” This comment followed pressure from climate sceptics and think tanks urging Labour to soften its renewable energy commitments.

He frames decarbonisation as an economic opportunity rather than a compliance burden. Consequently, his policy language emphasises growth, jobs, and industrial renewal alongside emissions reduction. This dual framing is consistent across his public statements and mayoral record.

Burnham has also rejected what he calls a “punitive” approach to climate policy. Instead, he argues that investment and support achieve better results than penalties. For businesses, this suggests a shift away from fines and enforcement toward grants, subsidies, and infrastructure support.

Public ownership of utilities expected to accelerate grid investment

Burnham has committed to bringing energy and water under public control. He prefers this terminology over “nationalisation,” though the practical effect is similar. This would represent one of the most significant structural changes to UK energy markets in decades.

The likely scope includes control of the electricity grid, currently operated by National Grid, and water utilities such as Thames Water. Power generation may remain in private hands, but transmission and distribution would shift to state oversight.

For businesses, this could mean lower energy costs if the state prioritises infrastructure investment over shareholder returns. It could also accelerate renewable grid connections, which currently face lengthy delays. However, it introduces questions about procurement processes, contract stability, and the speed of decision making under public control.

The model mirrors Burnham’s reforms to the Manchester bus network, where public control enabled route planning and fare integration that private operators had not delivered. Applying this to energy could improve coordination between generation, storage, and demand management.

Nevertheless, the transition itself carries risk. Structural reorganisation of utilities typically involves regulatory uncertainty, contract renegotiation, and disruption to existing supply agreements. Businesses with long term energy contracts or grid connection agreements should monitor developments closely.

North Sea licensing stance creates policy ambiguity

Burnham has described himself as “open minded” on North Sea oil and gas licensing. This contrasts with calls from climate campaigners for an outright ban on new exploration. It also introduces potential conflict with the UK’s 2030 clean power goal, which assumes a rapid phase down of fossil fuel use.

Projects such as Rosebank and Jackdaw could become flashpoints. If new licences are granted, it may signal a slower fossil fuel exit than climate advocates expect. Conversely, if Burnham maintains the current licensing freeze, it would align with his June 2025 comments on the fossil fuel phase out treaty.

His voting record adds nuance. Burnham recently voted to adopt the UK’s seventh Carbon Budget, which includes an 87% emissions cut by 2040 and maintains the ban on new North Sea licences. This suggests his “open minded” rhetoric may not translate into a licensing free for all.

For businesses in oil and gas supply chains, this ambiguity matters. If new licences are restricted, it accelerates the need to diversify into offshore wind, hydrogen, or carbon capture. If licensing expands, it extends the commercial life of existing North Sea infrastructure but may attract reputational and regulatory risk.

The tension between industrial policy and climate goals is evident here. Burnham’s focus on reindustrialisation could justify continued fossil fuel extraction to support manufacturing and energy security. However, this would sit uncomfortably with his stated commitment to net zero.

Devolution agenda shifts delivery to regional authorities

Burnham’s “Manchesterism” model prioritises regional control over centralised mandates. He is expected to transfer powers from Whitehall to local authorities, particularly in areas such as transport, energy, and planning.

This could make net zero delivery more responsive to local conditions. Regional authorities may tailor energy schemes, retrofit programmes, and transport projects to their specific industrial base and housing stock. Greater Manchester’s experience suggests this can speed up implementation when local leaders have both authority and accountability.

However, it also creates complexity. Businesses operating across multiple regions could face inconsistent standards, timelines, and support mechanisms. A carbon reduction scheme that works in Greater Manchester may not be replicated in the West Midlands or South East.

For suppliers bidding on public sector contracts, regional devolution may mean engaging with multiple procurement frameworks rather than a single national system. This could increase administrative costs but also create opportunities for businesses with strong local presence.

The shift away from what Burnham calls “top down zealotry” may reduce the risk of blanket mandates that ignore sectoral differences. Yet it requires businesses to monitor policy developments at regional level, not just in Westminster.

What UK businesses need to understand now

Several practical points matter for business planning. First, the statutory net zero targets remain in place. The 2050 goal and interim carbon budgets are not under threat. Therefore, long term decarbonisation strategies should continue.

Second, the delivery model is changing. Public control of utilities could bring faster grid connections and lower energy costs. However, it may also involve contract renegotiation and shifts in procurement processes. Businesses should review their energy contracts and grid connection agreements.

Third, North Sea licensing policy remains unclear. Firms in fossil fuel supply chains face uncertainty. Diversification plans should account for both scenarios: continued licensing restrictions or a partial reopening.

Fourth, regional devolution will create varied policy landscapes. Businesses operating nationally should prepare for inconsistent timelines and standards across regions. Those with strong regional ties may benefit from closer engagement with local authorities.

Fifth, the emphasis on investment over penalties suggests more grant funding and subsidy schemes. Businesses should position themselves to access support for energy efficiency, renewable installations, and low carbon manufacturing.

Government formation and cabinet appointments add further variables

Burnham is reportedly considering Ed Miliband for Chancellor. Miliband has a strong track record on climate policy and low carbon economic growth. His appointment would likely reinforce the net zero agenda and increase public investment in green infrastructure.

Conversely, the Tony Blair Institute has urged Burnham to abandon the 2030 clean power target. He has not publicly responded to this advice. If he softens the 2030 goal, it would extend timelines for coal and gas phase out, affecting power purchase agreements and renewable energy investment.

Investor sentiment currently expects broad continuity. However, public ownership of utilities and potential shifts on North Sea licensing are viewed as areas of uncertainty. Businesses should watch cabinet appointments and the first King’s Speech for clarity on policy direction.

SBS perspective: prepare for structural change, not target shifts

We expect the 2050 net zero target and carbon budgets to remain unchanged. However, the mechanisms for achieving them will shift significantly. Businesses should focus on three areas.

First, energy procurement. Public control of utilities could reshape contracts, pricing, and grid access. Review existing agreements and prepare for potential renegotiation. Our compliance support services can help assess exposure and identify actions.

Second, regional policy divergence. Devolution will create varied approaches across England. Monitor local authority plans in regions where you operate. Engage early with regional procurement frameworks and subsidy schemes.

Third, supply chain resilience. North Sea licensing uncertainty affects fossil fuel suppliers but also creates opportunities in renewables and carbon capture. Diversification strategies should account for both scenarios. Our sustainable procurement support helps suppliers adapt to changing energy markets.

For businesses already working toward net zero, Burnham’s agenda is unlikely to require major strategic shifts. The targets and timelines remain. However, the funding mechanisms, regional delivery, and public sector role will change. Early preparation reduces disruption and positions businesses to benefit from new support schemes.

Carbon reporting requirements under PPN 06/21 and the seventh Carbon Budget are unaffected by the leadership change. If you need support with reporting or target setting, our net zero programme provides practical guidance for SMEs.

Where to find authoritative updates and guidance

The Department for Energy Security and Net Zero publishes official policy updates, consultations, and statutory guidance. This remains the primary source for regulatory developments.

For carbon budget details and emissions pathways, the Climate Change Committee provides independent analysis and progress reports. Their assessments of government policy help businesses understand likely compliance requirements.

Details on PPN 06/21 and public sector net zero commitments are available through official procurement policy notes. These set out the requirements for suppliers bidding on central government contracts over £5 million.

Regional policy developments will appear through combined authority publications. Greater Manchester’s approach is documented on the Greater Manchester Combined Authority website, providing a model for other regions.

Businesses should also monitor Parliamentary debates and committee inquiries once the new government is formed. Select committee reports often provide early signals of policy direction before formal consultations begin.