Andy Burnham calls for ‘stronger public control’ over industry and AI

Andy Burnham, the politician who threatened to overthrow British Prime Minister Keir Starmer’s leadership, has called for tighter regulation on AI, Big Tech and major industries if he returns to central government.

“Lest we forget: the main cause of the 2008 crash was a failure of regulation,” the Labor Party politician and mayor of Greater Manchester said in a statement. Article British newspaper The Times published it on Thursday evening.

“So how can a new wave of regulation be the answer to the problems we have experienced since then? This … is the kind of thinking that will lead us to repeat past mistakes and, if we are not careful, prevent us from protecting children by failing to regulate social media, artificial intelligence and big tech.”

Burnham – who is not yet a sitting member of the UK Parliament – ​​will contest a by-election in Makerfield, north-west England, on June 18.

Being elected as an MLA in Westminster would clear the way for him to launch a formal leadership challenge to Starmer, whose premiership is under intense pressure following the ruling Labor Party’s crushing defeat in UK local elections. The results have left Starmer’s position in limbo, with dozens of lawmakers calling for his resignation and speculation that some of his own are planning a leadership coup.

Prediction market platform Polymarket currently ranks Burnham as the UK’s most likely next Prime Minister, with a 56% chance of taking over in 2026, while Starmer has a 26% chance of remaining in the job for the remainder of the year.

Starmer has vowed to continue in his role, but party members will be given a leadership vote if a challenger gets enough support from incumbent politicians.

The prospect of Burnham, considered more left-leaning than Starmer, replacing the current prime minister has caused jitters in bond markets in recent weeks. Investors in UK government bonds are called GiltsStarmer and his Finance Minister Rachel Reeves appeared largely supportive of remaining in their roles, due to their commitment to getting public borrowing and spending under control.

But it is widely expected that Burnham will launch a campaign to oust Starmer if she wins a seat in Parliament.

Burnham, colloquially known as Labour’s “king in the north”, attempted to calm markets last week, hitting back at previous comments in which he suggested Britain was “under siege by the bond markets.”

However, his Thursday op-ed was written in response to a Essay Published by Tony Blair, in which the former British Prime Minister accused the Labor Party of endangering the country’s future by prioritizing internal politics over economic growth and competent governance.

Burnham argued in his rebuttal that “40 years of neoliberalism” and “the acceptance of deregulation and privatization of essential services” have harmed many communities across Britain.

“After all, the slowing economy hasn’t declined much,” he said, adding that failure to change course would put Britain at risk of “getting sucked into toxic, divisive politics like the US and all the social harm that comes with that.”

“The lesson from Greater Manchester is that you can’t just leave it to the market,” Burnham said. He pointed to interference in transportation services in the city as an example of regulation that spurs development.

“If you want high growth in areas where it doesn’t exist, you need strong public control and direction over investment strategy and enablers of a more productive economy like transportation, energy, water, education and housing.”

— CNBC’s Holly Elliott and Hugh Leask contributed to this report.