Burnham names continuity team as UK eyes water nationalisation

Andy Burnham has appointed the senior staff who will run his Downing Street operation when he becomes prime minister on Monday, opting to retain most of Keir Starmer’s key advisers. The new team includes holdovers such as national security adviser Jonathan Powell and business adviser Varun Chandra, alongside new hires from the corporate lobbying sector.

The retention of Chandra will come as a relief to business groups that had complained about a lack of contacts within the incoming administration. The recruitment of James Purnell, the former chief executive of Flint Global, as chief of staff and Hayden Munro from Arden Strategies as political director further signals an effort to maintain a bridge to the private sector.

Despite this emphasis on continuity, the appointments have sparked internal debate over Burnham's economic direction. “This is very much Continuity Keir,” said one person briefed on the moves. “These are good, competent people. But if you expected them to pursue a radically different type of politics, you will be disappointed.”

Allies of the incoming prime minister reject this assessment. “We will have a leader at the top who is inherently political and the people he has picked are passionate about driving his vision for radical reform and change,” a close associate said. The true test of that ambition will come next week, when Burnham is expected to unveil policies on energy, water and the cost of living.

Those announcements are poised to disrupt several major markets. Burnham is preparing to confirm plans to put water companies, including the struggling Thames Water, into public ownership through either full nationalisation or a mutual model featuring local government and worker representation. He is also weighing a freeze on private sector rents to curb housing costs.

The energy strategy will likely frustrate environmentalists while offering a concession to oil producers. Burnham intends to honour the manifesto pledge against issuing new North Sea licences, but he is reportedly willing to grant environmental permission for the major Rosebank and Jackdaw fields, pending the conclusion of legal consultations.

To manage this aggressive legislative agenda, Burnham has appointed Alison Phillips, the former Mirror editor, as transition director. A spokesperson said her mandate is to “establish No 10 as an effective team that can deliver Andy’s ambition to give Britain breathing space in the cost of living, deliver growth in every postcode and return power to communities.”