Burnham takes power with pledge to restore stability
Andy Burnham has become the UK’s 59th prime minister, promising a “circuit breaker for Britain” as he confronts weak growth, strained public finances and widespread concern about household finances.
Burnham took office today [20 July] after Sir Keir Starmer resigned following Labour’s poor local election results in May and a collapse in support for his leadership.
The former Greater Manchester mayor is the seventh prime minister since 2016, extending a period of unusually rapid political turnover.
Speaking outside 10 Downing Street after meeting King Charles at Buckingham Palace, Burnham acknowledged public frustration with Westminster and said restoring stability would be central to his government.
“I know people at home are fed up with politics. I hear you, and I want to be honest with you. We have not been good enough, and we need to be better,” he said.
Burnham promised “the biggest changes in the last 40 years”, including a new political and economic model built around devolution, public control of essential services and support for British industry.
He said power would be transferred from Westminster into “every postcode in the land”, while public procurement would be used to support reindustrialisation.
A 10-year plan for Britain will be published later this year, but Burnham said immediate cost-of-living measures would begin to be set out on Tuesday, alongside details of how they would be funded.
His early priorities include helping more young people into work, reforming education, expanding mental health support and building more council homes.
He also said his first instruction as prime minister would be to end rough sleeping.
However, Burnham inherits limited fiscal room. Public sector borrowing reached £23.3bn in May, £5.6bn above the Office for Budget Responsibility’s forecast, while public sector net debt stood at 95.1% of gross domestic product.
Inflation also remains above the Bank of England’s 2% target, complicating efforts to provide further household support without unsettling financial markets.
Susannah Streeter, chief investment strategist at Wealth Club, said Burnham’s first challenge would be to restore confidence and demonstrate that the economic environment was predictable enough for long-term investment.
“Political turmoil has become a defining feature of the landscape, so restoring stability will be crucial to boosting confidence,” she said.
Streeter said Burnham’s record in Greater Manchester suggested a focus on devolution, transport investment and regeneration.
The challenge would be to combine the resilience of established industries with greater support for technology and other high-growth businesses.
Household confidence will also be an immediate concern. Kevin Mountford, personal finance expert and co-founder of Raisin UK, said greater clarity on tax, spending and economic priorities was essential when 55% of Britons reported feeling stressed about their finances.
“Prolonged uncertainty risks making it even harder for people to feel confident about their financial decisions,” he said.
Burnham will also have to maintain momentum behind workplace pension reforms. Chris Eastwood, chief executive of Penfold, said employers and providers needed clarity while changes moved into delivery.
“Auto-enrolment has brought millions of people into pension saving, but participation alone does not guarantee a comfortable retirement,” he said.
Gareth Tancred, chief executive of the Pensions Management Institute, added that the UK faced “decades of under saving, growing housing challenges and increasing complexity in the savings landscape”.
In his final Downing Street address, Starmer defended his record on the economy, public services, immigration and defence. He wished Burnham “every success” and said his successor had his full support.
Burnham closed his first speech by promising to put care at the heart of government and appealing for national unity.
“Let us make this the moment when Britain starts to believe again,” he said.
