Burnham named UK prime minister, vows economic model reset

Andy Burnham has formally become the UK’s sixth prime minister in a decade after meeting King Charles at Buckingham Palace, taking over from Keir Starmer. Addressing the country from Downing Street without notes, Burnham acknowledged the rapid turnover in leadership, admitting the public was "fed up" with politics.

The new prime minister promised a 10-year plan to transform the British economy, framing his arrival as a "circuit breaker" moment. He explicitly blamed the deindustrialisation and privatisation of the 1980s for leaving large parts of the country in decline. He pledged to reverse this through a new economic model focused on re-industrialisation and devolution.

Prudent fiscal stance to reassure markets

Investors will be watching closely to see how Burnham funds his ambitions. He named John Healey as chancellor in a surprise appointment after Rachel Reeves departed the cabinet. Burnham signalled he would stick to the government’s existing fiscal rules, though he said he would look at "any flexibility" within them to borrow billions for infrastructure.

"None of this is about taking risks with the economy," Burnham told reporters, emphasising a "very prudent" approach. He suggested cutting income tax for lower earners by raising the £12,570 personal allowance, which has been frozen for five years. He refused to rule out reintroducing a 50p top rate of tax, noting such decisions would wait for the budget.

Before the broader economic strategy takes shape, Burnham said he would start announcing measures on Tuesday to give people "some breathing space now." He is preparing a fully funded package to cut energy bills and bus fares, and did not rule out eventually freezing private sector rents. "We just want to do some things that people will feel and feel quite quickly," he said.

Foreign policy recalibration

Burnham’s first foreign leader call was with Donald Trump, whom he invited to Manchester for next year’s G20 summit despite Trump previously dismissing him as the mayor of "some town." He also spoke with Volodymyr Zelenskyy and European Commission president Ursula von der Leyen.

Ed Miliband moves from the energy brief to become foreign secretary, while Shabana Mahmood remains at the Home Office. Louise Haigh was appointed first secretary of state to run an expanded Cabinet Office, which Burnham intends to act as the "political engine room" of his government. David Lammy, Darren Jones and Steve Reed are among the senior figures leaving the cabinet.