NEWSMAKER-Manchester's 'King of the North' Andy Burnham seeks UK conquest

* Burnham seeks to return to British parliament

* Investors may take fright at economic plans

* Burnham wants a more ​efficient state, ⁠with more control

MANCHESTER, England, May 14 (Reuters) - Bright yellow buses crisscrossing Greater ​Manchester - cheaper, more reliable and back under public control after decades of privatisation - encapsulate the economic vision mayor Andy Burnham says he can deliver for Britain.

The Bee Network, launched in 2023 to standardise bus and tram services and ​fares, ‌is Burnham's "Manchesterism" proof of concept: the state, by reasserting control over public services and costs, can deliver more for less.

Known, not entirely seriously, as the "King of the North", Burnham said on Thursday he would seek to ⁠contest a parliamentary seat becoming vacant after a colleague's decision to stand down, potentially paving the way to ⁠challenge Prime Minister Keir Starmer for the leadership.

The news immediately triggered a ​fall in sterling, indicating investor concerns that Burnham's "business friendly socialism" would lead to more spending and borrowing.

Burnham, 56, has spent the last nine years outside Westminster as mayor of Greater Manchester, the northern English city-region that vies with Birmingham as Britain's second city.

He built a reputation as an outspoken critic of London's dominance, and Manchester's growth has outpaced the national economy - even as new skyscrapers and ​fast-rising house prices have ‌drawn criticism.

He said on Thursday that while he had delivered significant change locally, there were limits to what could be achieved from city hall: "Much bigger change is needed at a national level if everyday life is to be made more affordable again. This is why I now seek people's support to return to parliament."

BURNHAM ESPOUSES 'MANCHESTERISM'

Burnham's economic pitch hinges on convincing sceptical bond investors that his plans would strengthen the public finances in the long run.

But his comment to the New Statesman last year that Britain had "got to get beyond this thing of being in ​hock to the bond markets" was widely seen as a misstep. Finance minister Rachel Reeves seized on it, stressing the "reality" of the bond market's importance.

Burnham told Reuters in January his remarks had been misrepresented ‌and that he was not naive. But he said the current "low growth loop" did not work for investors, and that his approach would help reduce the state's underlying costs.

He told the Telegraph newspaper in September he wanted higher taxes on the most expensive ‌homes and the highest earners, and 40 billion pounds ($54 billion) of borrowing to build council houses and income tax cuts for lower earners.

Burnham sees an economy riven with inefficiency after years of privatisation and deregulation, which he says have stripped the government of control over its costs and services. He cites the shortage of social housing as a prime example, leaving the state ​paying large sums in benefits that flow to private landlords.

He applies the same logic to utilities and transport, arguing investors can be persuaded that rebuilding control over the state's cost base is safer than perpetually subsidising the consequences of ‌having lost it.

"We've got to do nationally what we've done in Greater Manchester, which is create a new politics," Burnham told Reuters.

"Support, on a long term basis, the investment in housing and the other utilities so we can start to lower our costs and support more people back into work."

Gordon Shannon, a partner at investment firm TwentyFour, which manages 23.5 billion pounds ($32 billion) of ⁠fixed income assets, reckoned ⁠a Burnham economic prospectus could entail roughly 50 billion pounds of additional borrowing.

That may be tough for investors to swallow.

LABOUR ‌VETERAN WAS DISGRUNTLED WITH WESTMINSTER

Born in suburban Liverpool, Burnham was raised in Culcheth, a village between Liverpool and Manchester. After dabbling in journalism, he worked for trade unions and became an adviser to Tony Blair's government in the late ​1990s.

Elected to parliament in 2001, he rose through ​the ranks to hold ministerial posts, including health secretary under Gordon Brown.

After unsuccessful bids for the Labour leadership in 2010 and 2015, he ‌quit parliament in 2017 to become Greater Manchester's first mayor, saying he had grown disillusioned with Westminster.

Opinion polls now rank him among Britain's most popular politicians. But to return to parliament, he must first secure selection from Starmer's Labour Party and then fend off an expected challenge from Nigel Farage's right-wing Reform UK.

Only then would he be in a position to challenge Starmer - and seek to take his Manchester model onto the national stage. ($1 = 0.7444 pounds) (Editing by Kate Holton and Ros Russell)