Andy Burnham has become the new prime minister of the United Kingdom, vowing to deliver a "circuit breaker" moment for the country. In his first address from Downing Street, he promised to restore hope to millions and outlined plans for the biggest political and economic changes in 40 years.
Immediate cost-of-living measures
Burnham acknowledged the severe cost-of-living pressures facing the nation and announced that measures would begin on Tuesday to provide "some breathing space now." He told reporters he is considering cutting energy bills and bus fares as part of a fully funded support package. More radical options, such as freezing private sector rents, could follow later.
"We are looking at measures that could make a difference this year," Burnham said. "We just want to do some things that people will feel and feel quite quickly. It won't solve everything, it won't take all of the pressure off, but it just shows the direction of travel and that we're serious about helping them out."
New cabinet appointments
In a surprise move, Burnham appointed John Healey as chancellor of the exchequer, replacing Rachel Reeves. Healey, the former defence secretary, emerged as a compromise candidate after Ed Miliband and Shabana Mahmood were tipped for the role. Miliband becomes foreign secretary, moving from his energy and net zero brief, while Mahmood remains at the Home Office. Louise Haigh, Burnham's close ally, was named first secretary of state and chancellor of the duchy of Lancaster, tasked with running a strengthened Cabinet Office as the "political engine room" of the government.
Several senior figures left the cabinet, including Reeves, David Lammy (deputy PM and justice secretary), Darren Jones, and Steve Reed. Some stated openly that Burnham had told them they were no longer needed.
Foreign policy engagements
In his first call with a foreign leader, Burnham spoke to US President Donald Trump, who had previously dismissed him as the mayor of "some town." Burnham invited Trump to Manchester for next year's G20 summit. He also telephoned Ukraine's President Volodymyr Zelenskyy and European Commission President Ursula von der Leyen.
Ending rough sleeping and economic vision
Burnham announced that his first instruction in power would be to end rough sleeping, following a visit to homeless people in central London. He made a similar pledge as Greater Manchester mayor but oversaw four years of rising street homelessness.
Speaking without notes, watched by his wife Marie-France van Heel, Burnham said: "I am acutely conscious that I am the sixth person in the last 10 years to walk up this street, the seventh prime minister since 2016, making this a moment for reflection and new resolution."
He added: "It requires my generation of politicians to raise our game and rise to the new challenge. Britain needs to show the world that we can regain our stability once again, and that is our challenge to make politics work, to make it work better."
Economic model and fiscal approach
Burnham has placed transforming the UK's economic system at the heart of his plans, despite limited fiscal room given his commitment to existing rules. He said: "We will make this moment a circuit breaker for Britain, bringing forward the biggest changes in the last 40 years. A new political model and a new economic model."
Referring to the era of Margaret Thatcher's Conservative government, he added: "In the 1980s, Britain took some wrong turns. Political power was centralised, economic power privatised, large parts of the country deindustrialised and they still haven't recovered."
Burnham said he would look at "any flexibility" within fiscal rules to borrow billions more for infrastructure but would take a "very prudent" approach. He suggested he could cut income tax for lower earners by raising the tax-free personal allowance, frozen at £12,570 for five years. He refused to rule out reintroducing the 50p top rate of tax, saying it would be "premature" to decide.
"All of this will be looked at though at the budget, and obviously it's difficult given the financial circumstances in which we find ourselves," Burnham said. "But I wanted to recognise the point because it's challenging for people and it's people on the lowest incomes perhaps who've most been affected by that."
Burnham concluded: "I will put the care of people at the heart of everything I do. I will give this my all, and I ask you all to pull with me. Let's build a new national sense of unity, of common purpose, and positivity. Let us make this the moment when Britain starts to believe again, the moment we bring back hope."
