IMO Burnham’s fate will turn, and turn quite quickly and noisily, on the issue of government spending.
Drilling in the North Sea is a longer-term income stream. It matters a lot, but the markets will question it just as anyone would: how are you, PM Burnham, going to keep the public finances in order in the intervening years and afterwards?
If there’s no significant curb on government spending soon, the outlook is grim. And if there is a reduction Labour MPs will become very, very unhappy. They’re already pressing for a return to previous levels of overseas aid spending.
He can try to do what most PMs would do: talk up gesture schemes to try to make people think he’s spending and making a difference, yet quietly trim spending elsewhere. But the pressures are too great now to get away with that. Plus an increased tax burden will have its own big political and economic downside, not least a brake on growth.
This could soon get turbulent politically if the shiny new King has to disappoint his courtiers. Buckle up.