New UK PM Burnham approves North Sea oil as policy doubts linger

Andy Burnham will become the 59th prime minister of the United Kingdom on Monday after leading a shadow revolt to oust Sir Keir Starmer. The 56-year-old former Greater Manchester mayor takes over a fractured Labour Party and an economy beset by deep structural problems.

So far, the clearest signal of his economic agenda is a decision to allow new drilling for oil and gas in the North Sea. This move directly overrides current Energy Secretary Ed Miliband, who paradoxically helped manoeuvre Burnham into power by telling Starmer his time was up.

The policy reversal highlights Burnham's determination to set the government's direction, but it leaves energy markets and investors guessing about his broader strategy. A colleague noted the decision was "a slap in the face" to Miliband, adding that while Burnham "looks cuddly to the public but he is a total hammer."

Beyond the North Sea, the new administration's economic playbook remains largely opaque. One party insider admitted his team has "no clue" what they are going to do in many different parts of government. A current cabinet minister noted that while Burnham is "replete with political and relationship skills", on his political project, "we're still learning".

Businesses looking for fiscal stability may find little comfort in historical assessments of his economic thinking. As chief secretary to the Treasury in 2007, the former chancellor Alistair Darling once described him as "like a lorry on ice" because his thinking swerved around. Critics have previously labelled him a flip-flopper, though allies argue he simply had the courage to change his mind when circumstances shifted.

His political philosophy centres on the idea that "place not party" matters, a framework he developed while running Greater Manchester. An ally claims he was a "brilliant leader of teams" willing to work with Conservative and Liberal Democrat council leaders. This suggests a potentially less ideologically rigid approach to regional economic development.

However, his desire to be widely liked could pose risks when implementing unpopular economic reforms. As one cabinet minister warned, wanting to be popular "can be destabilising when the inevitable happens and you are not popular." For a continent watching its largest neighbour, Burnham's premiership starts with more questions than answers.