Andy Burnham as UK prime minister: what it means for climate-conscious businesses

Andy Burnham took office as the UK’s new prime minister this week, after a Labour leadership contest that saw Keir Starmer step aside. As former mayor of Greater Manchester, Burnham built a reputation for practical, delivery-focused climate action, from a 2038 carbon-neutrality target to an integrated public transport network that cut car dependency. For UK businesses, his arrival in Downing Street raises a timely question: what does this leadership change mean for the green transition, and where should companies be looking for opportunity?

What does Burnham’s leadership mean for UK businesses on climate?

A growing market for clean energy and green jobs

One of the clearest signals from the new government is a push to bring energy and water companies under greater public control, alongside plans that could cut household energy costs by around £130 a year and make running a heat pump cheaper than a gas boiler. For businesses in clean energy, heat pump manufacturing, insulation, and retrofit services, this points to a growing domestic market. Burnham’s own record in Greater Manchester, where home retrofitting and the Bee Network integrated transport system have been central to his climate strategy, suggests a national government inclined to invest in the infrastructure and jobs that a faster transition requires.

Investment clarity is becoming a bigger priority

Alongside plans for public control of utilities, Burnham’s team is also weighing new oil and gas activity at the already-licensed Rosebank and Jackdaw fields. Investors have been vocal about wanting clear, consistent direction on energy policy, since stable, predictable rules are what allow renewable energy projects to secure financing and scale. Market analysts currently expect broad continuity in the UK’s overall energy policy direction, which is good news for businesses that have already built long-term strategies around the UK’s net zero commitments and want confidence that the goalposts won’t shift suddenly.

Climate adaptation is opening up new business needs

The UK has just experienced a record-breaking run of heatwaves, with researchers from Imperial College London, the Met Office and the London School of Hygiene and Tropical Medicine estimating that more than 2,700 people died from heat-related causes in England and Wales during May and June. This is accelerating demand for climate adaptation solutions: cooling systems for schools and hospitals, resilient building materials, flood defence infrastructure, and workplace heat safety measures. Businesses that can help the UK adapt to a warmer climate, while also cutting the emissions driving it, are well positioned as government and local authorities increase spending in this area.

Net zero remains a live national conversation

Climate policy continues to be actively debated in Westminster, with the opposition proposing to repeal the legally binding net zero by 2050 target. At the same time, independent analysis from the Climate Change Committee has described a net zero pathway as feasible, and polling shows continued majority public support for the target across the political spectrum. For businesses, the practical takeaway is that near-term reporting and emissions-reduction obligations remain firmly in place, and companies that keep building genuine decarbonisation capability now will be better placed no matter how the political debate evolves.

What does Andy Burnham’s track record suggest for the direction of travel?

As mayor, Burnham built his climate credentials around tangible delivery: a 2038 carbon-neutrality target for Greater Manchester, expanded low-carbon public transport, home retrofitting programmes, and calls for greater funding and devolved powers so regions can move faster on climate alongside national government. That track record suggests a prime minister who sees the green transition as an economic opportunity, good jobs, cheaper bills, healthier communities, rather than a cost to be minimised. For businesses already investing in decarbonisation, that’s a reassuring signal about the direction of UK climate policy over the coming years.

What this means for UK climate legislation and reporting

Regardless of how the political debate unfolds, the UK’s legislative framework for sustainability disclosure keeps advancing on its own timeline. The UK Sustainability Reporting Standards (UK SRS) are reshaping how large UK companies report on climate-related risks and opportunities, giving businesses a clearer framework to demonstrate genuine progress on emissions and climate resilience. Staying ahead of these requirements isn’t just about compliance, it’s an opportunity to build trust with investors, customers, and regulators alike.