Andy Burnham has taken office as the United Kingdom's sixth prime minister in a decade, vowing to "bring back hope" to Britain. In his first major move, he appointed John Healey as chancellor of the exchequer, a surprise choice that signals a focus on fiscal stability. Burnham acknowledged public frustration with politics and promised a government that "does better" to deliver real change.
First speech and cost-of-living measures
In his inaugural address outside 10 Downing Street, Burnham announced that the government would provide "some breathing space" on Tuesday regarding the cost of living. Plans include cutting energy bills and bus fares as part of a fully funded package. He later told reporters he would explore "any flexibility" within existing fiscal rules to borrow more for infrastructure investment, but stressed a "very prudent" approach to the economy. UK 10-year gilt prices dropped after his comments, reflecting market jitters over potential higher borrowing.
Cabinet appointments and key roles
Burnham moved swiftly to assemble his cabinet, sacking several Keir Starmer loyalists including chancellor Rachel Reeves, who returned to the backbenches. John Healey, 66, a former defence secretary and Treasury minister under Gordon Brown, was appointed chancellor. Healey is regarded as a safe pair of hands and will oversee economic policy, including raising military spending to 3% of GDP by 2030. Ed Miliband becomes foreign secretary, while Shabana Mahmood remains at the Home Office. Louise Haigh, Burnham's right-hand woman, was named first secretary of state and chancellor of the duchy of Lancaster, tasked with running a beefed-up Cabinet Office. Yvette Cooper moves from the Foreign Office to the Department of Health to oversee social care reform, and Pat McFadden stays at the Department for Work and Pensions. Angela Rayner, who resigned as deputy prime minister over a stamp duty row, was reappointed as housing secretary.
International calls and diplomacy
In his first world leader call, Burnham spoke with US President Donald Trump, who had previously dismissed him as mayor of "some town." Burnham invited Trump to Manchester for next year's G20 summit. Trump later wrote on social media that the two leaders "had a very good conversation," discussing Iran, the US-UK military alliance, and trade, and agreed to meet "in the not too distant future." Burnham also spoke with Ukraine's President Volodymyr Zelenskyy and European Commission President Ursula von der Leyen.
Economic vision and borrowing plans
Burnham has placed transforming the UK's economic system at the heart of his agenda, despite limited fiscal headroom before the next election. He promised "the biggest changes in the last 40 years," criticizing the centralization and privatization of the 1980s that left many communities deindustrialized. Healey will be responsible for combining fiscal responsibility with reindustrialization, devolution, and cost-of-living relief. Burnham also suggested he could cut income tax for lower earners by raising the tax-free personal allowance, but did not rule out bringing back the 50p top rate of tax to fund it.
Outgoing PM Starmer's farewell
Keir Starmer, who was ousted by Labour MPs, left Downing Street saying "my work is done" in turning around the Labour party. He warned Burnham about foreign affairs, stating, "We face a world now where our enemies will stop at nothing to divide us." Starmer left handwritten notes for all Downing Street staff and departed with a smile, proud of his achievements.
