New PM, same old problems: What's awaiting Andy Burnham as he enters Downing Street? writes Natasha Clark

While Andy Burnham prepares to take the keys to No10, the work being done behind the scenes on the transition of power is already underway.

Access talks have been going on with the civil service for several weeks, with discussions between his team and current Secretaries of State helping to get the ball rolling.

We're expecting to see him in No10 at lunchtime on Monday, and he'll take urgent calls from world leaders before revealing his Cabinet and starting to run the country.

And while Labour MPs are optimistic about the future Burnham Premiership, there's a lot to get on with.

Cost of Living

This, we're told, is likely to be Andy Burnham's top priority next week as he enters No10.

He's promised to "make life more affordable" for people and ease the burden, but it's unclear exactly what this will mean.

But with the economy proving difficult, energy prices staying high, and inflation sticky, this may be one of the PM's biggest challenges in office.

Options on the cards may be an intervention on energy bills - or a longer-term solution of bringing more functions like housing and water into public ownership, where the state will have a say in those prices.

Thames Water - which is rapidly running out of money - is being eyed up for potential government intervention under a Burnham government.

Economy and tax

Andy Burnham told LBC he's going to stick to the 2024 manifesto - that means no raising income tax, NI or VAT.

That will box him in to being able to do little else without some radical shake up of tax policies.

We know he's planning to hike taxes on big warehouses to cut them on small high street businesses, hospitality, and pubs - including a fresh look at business rates.

He's promised to be a "pro-business" prime minister while insisting he will be "fundamentally Labour".

There are no immediate plans for a wealth tax of sorts, but Burnham has said he wants to make the system fairer, and he might ask people to pay a little bit more in future.

Burnham's first budget will be big in setting the direction of travel, but we hear there aren't any plans for any emergency statements at the moment.

His economic inheritance is set to be tricky, however.

Growth still isn't what economists hope it could be, and there's a growing youth unemployment crisis.

Burnham is waiting patiently for Alan Milburn's list of suggestions on how to get young people back to work, which will come in the autumn.

Devolution

Burnham's insisted that devolution will be high on his agenda - and is looking at a range of plans to give more powers to local communities.

Recent laws have already given local regions more powers - including for a hospitality tourist tax - but Burnham wants to go even further.

This could include education, skills, and transport, with his Bee Network franchise plans seen as an effective model for the rest of the UK.

Mayors around the country, including Sadiq Khan, are lining up with their list of demands, and fast.

Team Burnham hope that Number 10 North will be set up as quickly as possible to show the new PM means more than setting up a branch office.

It will be proof of his desire to rewire Whitehall if he can get these plans off the ground.

Foreign affairs

The ongoing wars in Ukraine and Iran will continue to pile pressure on the incoming government.

The PM's left a £5bn hole in defence investment plans he needs to fill this year - and there will be ongoing cash for Ukraine which President Zelensky will be lobbying for.

The war in Iran, showing no sign of ending, is in fact ramping up this weekend, further squeezing economic pressures with the Strait of Hormuz continuing to be at risk.

For Burnham, he is more interested in delivering for the left behind in Britain than standing beside world leaders on the international stage.

That will leave a very important job for his Foreign Secretary to step up to - with an increasingly volatile Donald Trump to deal with too.

And while Burnham may be less interested in this, world events may force him to step up here in a way that he may not be planning for.

After all, Starmer was forced to shred much of his plans to do more on the cost of living in light of the Iran conflict, and despite attempting a close relationship with President Trump, ended up severely distancing himself from the US leader.

Crime and immigration

Prisons are filling up again, and the government's got plans for more early releases in the next few months.

Burnham is likely to have no option but to follow this, or risk police being unable to arrest in the manner they'd like.

On jury trials, Burnham has told MP Karl Turner he's on board with ditching the plans to water them down. As that legislation goes through Parliament, he'll have to make a formal decision on whether to do so.

If not, it could mean the court backlog becomes another issue in the months to come.

Welfare

Starmer's government were badly burned when they tried to cut just £5billion from the welfare bill, resulting in a huge rebellion.

Burnham has said he will not shy away from an attempt to have another go, and has put people in his top team who realise the threat that the ballooning budget will pose.

How and what that looks like are a long way off, and Labour MPs are already grumbling about what that would mean.

But Burnham has appeared much more willing to try and tackle some of the thorny issues - social care included.

In this economic climate, he knows that every penny will count.

Energy decisions

As LBC reported last week, the PM-to-be is minded to look favourably at giving the green light to more oil and gas licences in the North Sea.

He's already tasked officials with getting it underway behind the scenes, and we're expecting to hear more soon.

The decisions on whether to allow Rosebank and Jackdaw oil refineries to go ahead will be on his desk or that of the new energy secretary.

While critics say it won't lower bills, a decision could help support local jobs here, fulfil his promise to "reindustralise" Britain, and make us less dependent on foreign imports of oil and gas for the foreseeable future.

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Natasha Clark is LBC's Political Editor.

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