20th Jul 2026 17:07
(Alliance News) - Andy Burnham promised to deliver the biggest change to British politics in 40 years as he became prime minister and swept away key figures from Keir Starmer's government.
He promised to provide early "breathing space" for households struggling with the cost of living, vowed to end rough sleeping and set out a goal of "reindustrialising Britain".
Speaking outside the door to No 10 Burnham said he would deliver "a new political model and a new economic model" for Britain.
Rachel Reeves was axed as chancellor, Starmer's deputy prime minister David Lammy was sacked and Peter Kyle lost his job as business secretary as Burnham cleared the way for his own allies to take key roles.
Starmer loyalist Steve Reed, who lost his cabinet role at the housing ministry, told Burnham: "I hope those who did not show loyalty to Keir will now show it to you."
Richard Hermer, another key ally of the former prime minister, was sacked as attorney general and Liz Kendall lost her technology secretary post.
In his first speech as prime minister, Burnham – whose return to Westminster triggered Starmer's resignation – acknowledged the turbulence in British politics which meant he was the seventh prime minister since 2016.
It was, he said, a time for "reflection and new resolution" and "Britain needs to show the world that we can regain our stability once again".
The Makerfield MP acknowledged a disaffection among Britons with politics in general.
"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. We will be.
"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."
He suggested that would mean putting "life's essentials back under stronger public control to make them affordable" and using public spending to back British businesses.
Burnham said he would set out a 10-year plan later this year but promised more immediate help to deal with squeezed household finances.
"I can do something to give people some breathing space now, some help with the cost of living, and I will set out some of those measures starting tomorrow, including how we pay for them," he said.
Burnham later told reporters he was looking at measures including rent freezes, caps on bus fares and help with energy bills although no final decisions have been made.
The new prime minister also promised to:
– Help more young people into work by changing the education system and giving them more support
– Build more council homes
– Create a more "preventative state", investing in people's success rather than paying for failure
He said: "That is the fair and sustainable way to bring the welfare bill down, to meet our fiscal rules, and to honour our commitments on defence to our international partners."
Burnham's ability to move is constrained by his commitment to follow the rules on spending and borrowing set out by Ms Reeves while she was chancellor and his promise to stick to Labour's manifesto commitment not to hike personal taxes for workers.
He told reporters he would use "any flexibility" he could find within the existing rules but "none of this is about taking risks with the economy".
Burnham said his approach was about putting the "right values and the right standards" at the heart of government.
"I will put the care of people at the heart of everything I do", he said, urging Britons to "pull with me" to "build a new national sense of unity".
Burnham's first call as prime minister was with US President Donald Trump.
Tory leader Kemi Badenoch sent a letter welcoming the prime minister and urging him to commit to spending cuts and rule out tax rises.
She also urged him to grant licences for the North Sea's Rosebank and Jackdaw and overturn the ban on new oil and gas licences.
Green Party leader Zack Polanski called on Burnham to impose rent controls, take the water industry into public ownership and introduce wealth taxes.
Burnham swept into Downing Street after being asked to form a government by the King following Sir Keir's resignation.
In his final speech as prime minister Starmer praised the "greatness of Britain" and said: "I go with good grace, I go with a smile, and I go proud of everything that we have achieved."
source: PA
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