Andy Burnham is to rack up billions of pounds in spending commitments in a policy blitz that could include more than doubling foreign aid and 'nationalising' Thames Water.

The new Prime Minister has drawn up plans for a string of eye-catching announcements in the coming days in a bid to make a favourable first impression with the public.

But he was heading for an early clash with Donald Trump last night over the North Sea. 

After reports that Mr Burnham would announce plans for new oil and gas drilling, the US President yesterday praised the former Manchester mayor, claiming on social media that he would be 'opening up the invaluable North Sea oil', leaving 'the people of Aberdeen... dancing in the streets'.

He said the move would turn Britain 'from a poverty-stricken disaster' to one of the richest countries in the world – while also suggesting that Mr Burnham would be dismantling wind farms off the coast of Scotland.

But Labour's deputy leader Lucy Powell has signalled only modest reforms that are likely to disappoint the President, saying the party's manifesto ban on new oil exploration licences would stay in place.

Following union anger over the impact of Ed Miliband's Net Zero approach, Mr Burnham looks set to tone down Labour's opposition to North Sea oil and gas.

The windfall tax on oil and gas firms is set to be softened and he will signal a less hostile approach to applications to exploit the Rosebank and Jackdaw fields.

Mr Burnham's aides did not dispute reports yesterday that he also plans to set a 'pathway' for reviving the commitment to spending 0.7 per cent of GDP on foreign aid. 

The last Conservative government cut it to 0.5 per cent and it is due to fall again to 0.3 per cent to free up cash for defence.

Reviving the target would cost £11billion a year – dwarfing the £4billion rise recently agreed for defence spending following a year of Labour infighting.

Reform UK's Treasury spokesman Robert Jenrick said: 'It looks like Burnham is going to raise people's taxes to waste it abroad. It's more of the broken status quo.'

Taking control of Thames Water, meanwhile, could ultimately cost the taxpayer £10billion.

The debt-ridden utility has been teetering on the brink of collapse for months and ministers recently rejected a takeover plan put forward by the firm's creditors.

Bosses yesterday said the firm would need 'at least £2billion' from the taxpayer to keep going until the end of next year.

One industry source told the Daily Mail the taxpayer could be left on the hook to fund the firm's capital investment programme, which would cost £10billion by the end of the decade.

Mr Burnham has said he wants greater state control over the energy and water giants. Other priorities include a commitment to tackle social care.

He has long favoured a 10 per cent levy on estates to fix the funding crisis in the sector and end the lottery faced by people in later life.

But critics have branded the proposal a 'death tax' and warned it could cost £18billion a year.

In a letter to Mr Burnham last night, Tory party leader Kemi Badenoch said it was vital he explained how he will fund his new agenda.

'Given taxes are already too high, and we are already borrowing far too much, you must commit to making spending cuts and to addressing our debt burden,' she wrote.

Mr Burnham also plans to scrap or scale back some of Labour's controversial policy decisions.

Sir Keir Starmer's plan to introduce a digital ID scheme is to be thrown out.

Ms Powell yesterday said it was a 'distraction', adding that the estimated £1.8billion cost could be better used elsewhere.