Government’s political and legislative agenda

Approximate read time: 25 minutes

The House of Lords is scheduled to debate the following motion on 3 September 2026:

Lord Hunt of Kings Heath (Labour) to move that this House takes note of the government’s political priorities and legislative agenda.

1. Key points

• The new prime minister, Andy Burnham, has set out a policy and legislative agenda centred around ‘rewiring the state’ and the devolution of greater powers to local areas.
• Mr Burnham has promised further details on what this approach will involve later in the year, including fiscal proposals to be set out in a budget statement in October 2026, and a 10-year plan for the future.
• The government has made several policy announcements since Mr Burnham took office, including the creation of No 10 North and the devolution of further powers and revenue measures to regional mayors in England, the removal of VAT on energy bills, a cut in business rates for pubs, social clubs and live music venues, and new technical education routes giving 14-year-olds early access to technical skills, work experience and employer links.
• Political reaction to the government’s agenda has focused on how the plans will be delivered and whether they will involve rises in taxation, for example, and whether the government’s plans are ambitious enough to tackle issues such as the cost of living, economic growth and climate change.

2. Implications of a change in government

The government led by Sir Keir Starmer set out its legislative priorities for the current parliamentary session in the 2026 King’s Speech.^[1] It is unclear to what extent the government led by Andy Burnham will pursue the policy objectives of the previous Labour administration and to what extent it will depart from them. Mr Burnham has spoken of his administration acting as a “circuit breaker” and pursuing a “new political model and a new economic model”, but in many respects it remains to be determined what this will mean in practice.^[2]

However, the Burnham government has made several policy announcements, summarised below, which give an indication of priority areas in the near term. The prime minister has also promised to set out a 10-year plan for the future later this year.^[3]

This briefing is not exhaustive, particularly as new policies continue to be announced. Given the scope of the debate, the information below is intended to provide a reference point and a guide to further material.

3. Rewiring the state

A statement released following the meeting of the cabinet on 31 July 2026 provided several indications of the new government’s key aims and objectives.^[4] The government said it was committed to delivering growth in every part of the UK, with places “able to set their own ambitions and integrate services to meet people’s needs”. To this end, the government said it would support the devolved governments, strategic authorities and local authorities to deliver that commitment, working in partnership with businesses and the voluntary, community, academic and faith sectors.

The statement said this work would begin with the government outlining a vision of devolution for England that would be reflective of “a fundamental rewiring of the way our country works”.^[5] Ministers said they had agreed a “new framework for governing” and said the full shape of the new model of government would be in place by the end of this parliament. As detailed below, the government has already made several policy announcements towards these aims including the creation of No 10 North and increased powers and revenue measures for English mayors.

3.1 Key areas of action

These policy announcements are reflective of the three key areas of action identified in the cabinet’s statement on 31 July 2026:^[6]

• Supporting local leaders to drive growth and improve public services. The statement said the cabinet had agreed a series of reforms to give more power to local leaders. This includes empowering mayors to offer a “high-quality locally tailored technical or vocational route from age 16, underpinned by control of the budget for 16- to 19-year-olds”. The statement also said mayors would be given powers, flexibility and accountability to bring together education, employment, health and local support for young people.
  These powers will be complemented by giving local leaders greater power to shape their places through control over local transport, housing, innovation, local energy and cultural and sporting investment.
  The government also intends to give areas more local democratic control over their public services including health, policing and education, including through the establishment of deputy mayor roles with responsibility for key public services. To this end, the government intends to align key public service boundaries. This will include new local police units aligning with local authorities, and regional police forces, fire and rescue services and integrated care boards aligning with the boundaries of strategic authorities by the end of the parliament. The statement notes that, where there are strong financial, strategic or operational reasons for larger organisations, this alignment may be to the boundaries of multiple, rather than just one, strategic authority.

• Providing local control over tax revenue. The government has agreed to change the way regional government is funded, starting by replacing grants from central government with a share of local income tax for every mayor beginning in 2028. Ministers argue that, when a region grows its tax base, it will benefit from the increased receipts. All strategic authorities will also be given the ability to introduce an overnight visitor levy, with local leaders able to set out plans for how revenues will be invested by March 2028.
  Arguing that there are currently large regional disparities between current levels of public investment per head in different parts of the country, the government said it would “rebalance public investment”, including considering the balance of subsidy and other finance mechanisms.
• Developing strong local institutions. The government’s ambition is to ensure every area in England has, or is in the process of establishing, a strategic authority by the end of 2027, with strategic authorities in place everywhere by the end of 2028. The government has said it “will not impose mayors on areas that do not want one”, but does consider that directly accountable mayors “represent the strongest form of governance available”.
  Where areas are not ready to adopt a mayor, the government has said it will work with them to set up non-mayoral foundation strategic authorities with an enhanced set of powers, including the option to introduce an overnight visitor levy. As part of these moves, the government said it had conferred established mayoral strategic authority status to four further areas: Cambridgeshire and Peterborough, East Midlands, West of England, and York and North Yorkshire.

The government has also said it will strengthen local accountability mechanisms, including that chief executives of mayoral strategic authorities will become local accounting officers, accountable for the use of public money.

The statement notes that these changes will have several implications for the role and shape of central government, the civil service and arm’s length bodies. It argues that central government must become “smaller and more strategic”:

We agreed that this agenda will be about devolution, not delegation. Central government must become smaller and more strategic, releasing savings and enabling resources to be transferred to local areas alongside policy responsibilities. Where powers and functions are transferred, we will not duplicate them. We also agreed to adopt an operating principle of devolving by default—meaning that where policies or services are being designed or altered, secretaries of state will need to justify holding them at the level of central government.^[7]

The statement also said the government will reform the way that it seeks public input on policy proposals:

We agreed to replace the current model of consultation by default with new and modern forms of public participation. This includes considering where performative statutory duties to consult can be revoked and how we can more actively bring the public into the policy-making process instead. This recognises that local leaders are better equipped to link public opinion and civil society to policy making.^[8]

The government has also said that these changes will mean a “smaller and more strategic” civil service, which is focussed on the challenges that can “best be dealt with at a national level”.^[9] The statement called for greater interchange with regional and local government, and said to achieve this new career paths would be built between central government and the wider public sector.

The statement said the government would take a similar approach to arm’s length bodies, including an examination of whether their functions should be transferred to local leaders or returned to ministerial departments.

3.2 Timetable for change

On the timing of these changes, the cabinet said it had agreed a number of “immediate” steps including greater flexibility to deploy funding within existing integrated settlements, and contacting areas without a strategic authority to confirm whether they wish to proceed with a mayoral or non-mayoral approach.^[10] The statement said this would be followed over the coming weeks and months with plans for the design of the overnight visitor levy, activating mayoral intervention powers in the planning system, devolving decisions on transport and works act orders, and streamlining the number of targets that mayors have to report on in relation to their integrated settlements.

The statement said ministers would publish a white paper detailing plans for the full set of reforms and a timetable for their implementation in the autumn. This will include plans for legislation, the alignment of public service geographies, and the devolution of new powers and functions. This will be published alongside the budget and a fiscal devolution roadmap that will set out the government’s overall approach to revenue assignment and rates retention.

The government said that mayors would retain a share of business rates from April 2027. Also in 2027, the government plans to establish new strategic authorities, with new mayors elected in Cumbria and in Cheshire and Warrington. Ministers also said the government would use the upcoming spending review to confirm the detailed arrangements for retained income tax, with receipts retained locally from April 2028.

4. Policy announcements by subject area

4.1 Machinery of government/devolution

• No 10 North/ National Economic Council/ departmental changes: The government has announced the creation of ‘No 10 North’, situated in Heron House in Manchester, to provide “the government’s new situation room for growth”.^[11] The prime minister has said he expects to work from No 10 North each week. He has also reinstated the National Economic Council (NEC), first established in 2008, which will include regional mayors. Andy Burnham chaired the first meeting of the reinstated NEC from No 10 North in July 2026. The government has also made several departmental changes including the abolition of the Department for Science, Innovation and Technology, with its functions to be moved to other departments.^[12]
• Devolution in England to local mayors: On 30 July 2026 the government announced plans for English mayors to retain a share of income tax and business rates revenues, with greater control over decisions affecting jobs, transport, housing and public services.^[13] Areas without a mayor will be supported to establish strategic authorities and gain more control over local priorities. The government said these changes would begin next spring, when mayors will start retaining a greater share of locally generated revenues, starting with business rates. Further details on this and on income tax retention will be set out in a roadmap at the next budget.
• A written constitution? Andy Burnham has reportedly said his government’s programme of decentralisation strengthens the argument for a written constitution.^[14] Mr Burnham said the UK needed to devise a codified model of devolution that works for Wales, Scotland, Northern Ireland and the English regions. He said such a move “does start to point towards a new constitutional settlement”. During conversations with the leaders of Wales, Scotland and Northern Ireland, Mr Burnham reportedly said he wanted a “collaborative, practical and pragmatic” relationship with the devolved administrations.^[15]

4.2 Treasury and public spending

• Fiscal rules: In May 2026, during his campaign for the leadership of the Labour Party, Mr Burnham committed to the previous Labour government’s fiscal rules—the restrictions on fiscal policy set to constrain spending and taxation.^[16] He confirmed this in his first speech as prime minister on 20 July 2026.^[17]
• Budget: The government has confirmed that it will set out its fiscal plans in a budget statement to be delivered on 28 October 2026.^[18] The chancellor, John Healey, has said it will be a budget “that moves money and power out of Westminster, and into every postcode around Britain”. He added that it would be “built on fiscal discipline” and will “meet our fiscal rules”.

4.3 Health and social care

• Adult social care reform: The government has announced it intends to take further action to reform adult social care and deliver a national care service.^[19] The Independent Commission on Adult Social Care, led by Baroness Casey of Blackstock (Crossbench) and established in 2025, will now be asked to report by summer 2027.^[20] The government also said it was bringing together a new group to examine ways to broaden the fair pay agreement into a bigger reform to bring the social care workforce closer to NHS standards in terms of pay and progression routes. The group will also ensure progress is made on the existing recommendations from Baroness Casey on improving support for those with dementia and motor neurone disease and strengthening adult safeguarding.^[21]
• Community mental health support: The government has announced a £343mn plan to open up to 159 NHS mental health facilities in England, including 100 community mental health centres and 59 dedicated mental health emergency departments.^[22] The first sites are due to open from autumn 2026, with further facilities from March 2027.
• Fast-tracked care for motor neurone disease patients: On 5 August 2026, the government announced the development of a new fast-track pathway to care and support for patients with motor neurone disease, drawing on the Rob Burrow Centre model of joined-up specialist care.^[23]
• Regulation of the funeral sector: The government has announced plans to crack down on rogue operators in the funeral sector and ensure better protection for bereaved families.^[24] This action comes after the sentencing of Robert Bush, of Legacy Independent Funeral Directors in Hull, who was sentenced to 20 years in prison following his conviction on a total of 67 charges, including the prevention of a lawful and decent burial, fraud, fraudulent trading and theft. Ministers say that the Department of Health and Social Care will work with the Ministry of Justice and the Law Commission to bring forward proposals to drive up standards and regulate the funeral sector.

4.4 Business, trade and procurement

• Business rates support for pubs, clubs and live music venues: The government has announced a 20% cut in business rates for pubs, social clubs and live music venues in England from April 2027, which it argues will benefit around 32,000 venues and be worth around £1,100 a year to a typical pub, on top of the 15% relief already in place.^[25] The release said the measure would be funded in part by reviewing reliefs for businesses that “do not make a positive contribution to local communities”, such as vape shops. The government has since announced further action on high street vape shops and bookmakers, as outlined below.
• Misleading discounts and subscription ‘traps’: The government has announced measures to ban misleading discount claims, such as discounted prices being the same as they were before the discount, and bring forward new “easy to exit” subscription rules from January 2027.^[26] These changes will mean businesses will need to provide clearer up-front information, regular reminders and easier exit to contracts. A new 14-day cooling-off period will also let consumers cancel after a trial or long-term contract renews.
• Public procurement and British industry: In his first speech as prime minister, Mr Burnham said that the government would use “public procurement to back British industry”.^[27] On 5 August 2026, the government announced that businesses bidding for government contracts—which ministers suggest are worth £90bn per year—will be “judged on their commitment to creating high-quality British jobs, tackling local skills shortages, and supporting young people into apprenticeships and work placements”.^[28] Ministers state that under the changes the weighting for bringing benefits to the local community under existing procurement rules will be raised from 10% to 20% for contracts worth £5mn or more, whether from UK or international providers.

4.5 Education, skills and young people

• Technical education routes from age 14: The government has announced new technical education routes giving 14-year-olds early access to technical skills, work experience and employer links.^[29] The plan will involve schools, colleges, mayors, local leaders and employers, and Ofsted will change inspection approaches to recognise technical education and work-readiness support. On 2 August 2026, the government announced that National Grid would create a £5mn ‘Power within employability fund’ to support 5,000 young people not in education, employment or training over five years.^[30]

4.6 Energy bills

• VAT cut on household electricity bills: The government has announced the removal of VAT from domestic electricity bills from 1 October 2026 for this financial year.^[31] Ministers state the cost of the policy, which is being taken now in time to impact the next Ofgem price cap, is being funded from the cancellation of the £1.8bn digital ID programme. However, Darren Jones, the former chief secretary to the former prime minister, Sir Keir Starmer, has suggested the digital identity programme was itself unfunded.^[32]

4.7 Transport

• £2 bus fare cap in England outside London: The government has announced eligible single bus fares in England outside London will be capped at £2 from 1 January to 31 December 2027.^[33] The new £2 cap is backed by £400mn of extra government investment. The government states the measure is being funded by savings from reprioritising the Department for Energy, Security and Net Zero’s budget, including by switching funding for international climate from grants to loans. The cap will replace the existing £3 cap and, the government argues, will support access to work, education, healthcare and leisure.
• More local control over rail services and other transport schemes: The government has said that it intends to give local leaders more control over commuter rail services, with the most established mayors working in “much deeper partnership” with Great British Railways.^[34] Ministers state that as new accountability arrangements are introduced, they will remove the need for government approval of locally funded transport schemes for places with integrated settlements, except those that interact with the national network. The government added that it would raise the approval threshold to £500mn and work with mayors to replace the concept of “retained schemes” with local transport infrastructure partnerships.

4.8 Housing, rough sleeping, and vapes and betting shops

• Council housebuilding and ending rough sleeping: In his first speech as prime minister, Mr Burnham committed to building more council homes and said his first instruction would be “to end rough sleeping in our country”.^[35] This followed commitments made during his leadership campaign, when Mr Burnham said he would oversee the “biggest council house building programme since the post-war period”.^[36] On 18 August 2026, the government announced its intention to provide “everyone who needs it a route off the streets by Christmas”, backed by a funding package of £442mn.^[37] The package will include emergency accommodation and help with housing, health and other needs.
• More powers for local authorities to tackle vape and betting shops: The government has announced that local authorities will be given additional powers to block new businesses opening in town centres to stop the “hollowing out” of high streets.^[38] The changes will include alterations to planning law in England such that every new shop selling e-cigarettes, or vapes, would need to apply to their local council for permission to open. Also in England, the definition of a vape shop will be tightened to prevent businesses avoiding the rules by describing themselves as a general convenience store or retailer. Across all nations of the UK, the “aim to permit” which currently restricts councils’ ability to refuse new betting shops and 24-hour slot machine shops, will be removed. Planning permission will also be required in England for new adult gaming centres, which offer 24-hour access to gambling machines. There will also be new powers to extend closure orders for mini-marts and vape shops found to be selling illegal tobacco for up to 12 months in England and Wales.

4.9 Defence and foreign affairs

• Honouring existing defence commitments/ Ukraine: The Burnham government has yet to make public much detail on its plans for defence, but in his first speech as prime minister Mr Burnham said the UK would “honour our commitments on defence to our international partners”.^[39] Meeting with Ukrainian President Volodymyr Zelenskyy on 27 July 2026, Mr Burnham said that he hoped his decision to host President Zelenskyy as his first international visitor sent a strong signal to the Ukrainian people of his personal commitment to Ukraine.^[40]
• Nuclear deterrent and defence procurement: On 30 July 2026, the prime minister and the new defence secretary, Wes Streeting, announced government funding worth around £8.4bn had been committed to begin the fourth major production phase of the UK’s Dreadnought Class submarine programme.^[41] The UK’s Defence Nuclear Enterprise currently supports around 47,000 British jobs, which ministers suggest is forecast to rise to 65,000 by 2030, including 22,000 apprenticeships by 2035.^[42]

4.10 Farming

• Drought support package: On 15 August 2026, the government announced a support package for farmers affected by this summer’s drought.^[43] The package includes temporary adjustments to environmental land management agreements and a funding package worth £65mn for various measures.

5. Political reaction to the government’s agenda

Conservative Party leader Kemi Badenoch has called the creation of No 10 North a “gimmick”, and suggested that measures such as capping bus fares and removing VAT on energy bills will not address a cost of living crisis that goes “much deeper”.^[44] Arguing that the government needs to come up with more ambitious proposals to ensure further growth and prosperity, she also called upon the prime minister to rule out rises in taxation to pay for increased public spending.

For the Liberal Democrats, Sir Ed Davey has said that he was encouraged by Mr Burnham’s tone and his talk of doing politics differently, but warned he wanted to see far more detail before making a full judgement.^[45] Sir Ed has said there is an “urgent need” to shift power out of Whitehall and into the hands of local communities, which meant giving people and councils a real say over their areas rather than a “one-size-fits-all answer from the top”.^[46] On social care, Sir Ed welcomed the prospect of cross-party working but said the prime minister had not yet said enough about the role of unpaid family carers, arguing they are central to fixing the wider system.^[47]

Reform leader Nigel Farage has criticised the government’s devolution agenda, arguing that it would not address what his party viewed as the country’s most pressing problems, including immigration and high levels of national debt.^[48]

Green Party leader Zack Polanski has criticised a lack of emphasis on tackling climate change in the government’s policy agenda and argued ministers appeared unwilling to challenge what he called “vested interests” such as the oil and gas lobby.^[49] He argued for more radical solutions to tackle the cost of living, including the creation of a wealth tax, rent controls and renationalising public utilities like water companies.

The SNP has suggested that the Burnham government’s stance on further devolution in England is at odds with the prime minister’s stated opposition to a second referendum on Scottish independence.^[50] SNP Westminster leader Dave Doogan criticised plans for a written constitution which could “act as a cage rather than a contract”, arguing that proposing a written constitution for a multi-nation state “while attempting to lock the exits is an exercise in absurdity”.

Wales’s first minister, the Plaid Cymru leader Rhun ap Iorwerth, has urged Andy Burnham to “turn his commitment to devolution into action” by giving Wales powers over policing, justice, rail and the Crown Estate.^[51]

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Image by Jacob Diehl on Unsplash.