Key facts
- Andy Burnham has become the UK's seventh prime minister in a decade.
- Burnham vowed to bring stability and a new economic model to Britain.
- John Healey was appointed as the new chancellor, with Ed Miliband as foreign secretary.
- The new government plans to announce cost-of-living support, including cuts to energy bills and bus fares.
- Burnham indicated flexibility within fiscal rules for infrastructure investment, causing gilt prices to drop.
- Burnham spoke with world leaders including Donald Trump, Volodymyr Zelenskyy, and Ursula von der Leyen.
Andy Burnham has assumed the role of UK Prime Minister, marking the seventh change in leadership in a decade and vowing to restore political and economic stability. He took office following the ousting of Keir Starmer, aiming to implement significant changes and repair damage to communities.
In his inaugural address, Burnham acknowledged public frustration with politics and pledged to "bring back hope" to Britain. He announced surprise cabinet appointments, including John Healey as chancellor and Ed Miliband as foreign secretary, while Shabana Mahmood retained her position at the Home Office. Louise Haigh was appointed First Secretary of State and Chancellor of the Duchy of Lancaster, heading a strengthened Cabinet Office.
Burnham's administration plans to introduce immediate cost-of-living relief, with measures to cut energy bills and bus fares expected. He also indicated a willingness to explore "any flexibility" within existing fiscal rules to borrow more for infrastructure investment, a stance that caused a temporary drop in UK 10-year gilt prices. Healey, a former Treasury minister, is tasked with balancing fiscal responsibility with reindustrialisation and growth.
The new Prime Minister's first instruction is to end rough sleeping. He also suggested potential future policies such as cutting income tax for lower earners or reintroducing a 50p top tax rate. Burnham's premiership aims to implement the "biggest changes in the last 40 years," focusing on a new political and economic model that devolves power and addresses historical deindustrialisation.
Burnham initiated his premiership with calls to international leaders, including Donald Trump, Volodymyr Zelenskyy, and Ursula von der Leyen. He invited Trump to Manchester for the G20 summit. The transition of power, however, could potentially unleash further instability, given the rapid succession of prime ministers.