Britain’s new prime minister, Andy Burnham, vows to end years of instability

By Elizabeth Piper, Andrew MacAskill and Alistair Smout

LONDON, July 20 (Reuters) – Andy Burnham became Britain’s seventh prime minister in a decade on Monday, pledging to reshape its politics to deliver a new economic model and revive a nation “fed up” with a revolving door of leaders.

In front of dozens of supporters outside his new office and residence at 10 Downing Street, Burnham said politicians had failed to bring the stability needed to raise living standards, something he said he would change, with both immediate measures and a longer-term plan to be drawn up later this year.

Speaking without notes, Burnham delivered a domestic-focused speech aimed at offering hope to a nation that has, like many European countries, struggled for years with soaring prices and anaemic economic growth. He did not touch on foreign affairs.

And with his first appointment as finance minister, Burnham pressed home his decision to rip up politics as usual. He appointed former defence minister John Healey to the second most powerful position in Britain, promoting a man who resigned under Keir Starmer in protest at the inflexibility of the Treasury.

“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,” Burnham said, dispensing with the lectern that prime ministers generally use.

Burnham pledged to use his premiership as a “circuit-breaker for Britain”, arguing that a new model was needed to rebuild the country, which has been in political turmoil since voting in 2016 to leave the European Union.

BURNHAM PROMISES 10-YEAR PLAN, BUT NOT FOR SEVERAL MONTHS

Just over an hour after his predecessor and Labour colleague Keir Starmer had made his farewell speech to say “My work is done”, the 56-year-old former Greater Manchester mayor entered Downing Street, where he said his team would tackle his first priority: to end rough sleeping.

The major challenges will then lie ahead.

After unveiling his cabinet — which had become the subject of much debate in the Labour Party, he must then tackle a long list of problems ranging from high levels of illegal immigration to underperforming utility firms. 

A key first decision was Burnham’s choice of Healey as finance minister after Rachel Reeves became one of several Starmer allies to leave the cabinet. Friction in this axis of government has brought down previous administrations.

Healey, 66, resigned from Starmer’s government last month after accusing him of failing to invest enough money in its military and leaving the country “well short” of what it needed to protect itself in a dangerous world.

Labour lawmakers welcomed the move, saying it would signal to U.S. President Donald Trump and NATO that Britain was serious about funding defence, and that keeping interior minister Shabana Mahmood in her role would mean she could press on with her reforms to try to control illegal immigration.

Energy secretary and former Labour leader Ed Miliband, who had once been considered a frontrunner to become finance minister, was appointed foreign secretary.

BREAKING WITH POLITICS OF THE PAST

The departures of several Starmer allies signalled Burnham’s intent to break with what he describes as the politics of the past, and usher in a new more agile cabinet to deliver on policy more quickly and more boldly.

After being ousted by his own lawmakers a month ago, Starmer stepped aside earlier in the day saying his work as prime minister was “the privilege of my life” and that he wished Burnham every success, with “my full support”.

Burnham did not refer to Starmer in his speech, instead focusing on how he will bring change. But he acknowledged that some of his programme would take time.

In his short address, thin on policy detail, Burnham said he would release a long-term plan for the next decade within months and repeated his pledge to build more public housing and to help bring down welfare spending to fund higher defence investment. Opposition parties suggested he would need to win a national election to get a mandate to implement it. 

But he promised to unveil more immediate measures on Tuesday to ease everyday pressures on Britons, and explain how he will pay for them.  

Speaking to reporters later on Monday, Burnham said he was finalising the details of those measures which he described as “things that people will feel and feel quite quickly”.

Underlining the sensitivity of Burnham’s plans to the financial markets, sterling slipped and British borrowing costs rose on his comment that he would stick to the previous government’s fiscal rules although he would look to use any flexibility within them.

‘KING OF THE NORTH’

Dubbed ‘King of the North’ for his dogged defence of the Manchester region’s interests, Burnham received messages of congratulation from foreign leaders, including European leaders who called for closer ties. 

His first phone call was with Trump, when Burnham suggested a visit to Manchester.

“The prime minister also underlined his commitment to defence and security,” a Downing Street spokesperson said in a statement, adding that Burnham had outlined Britain’s commitment to securing the movement of shipping in the Strait of Hormuz.

Yet initially, Burnham’s focus is very much on domestic issues.

Labour lawmakers see Burnham as one of the few figures capable of tackling the threat from veteran Brexit campaigner Nigel Farage’s populist Reform UK – something they doubted the unpopular Starmer could do. 

“Let us make this the moment when Britain starts to believe again,” he said. “The moment we bring back hope.”

(Reporting by Elizabeth Piper, Alistair Smout and Andrew MacAskill; additional reporting by Sam Tabahriti, David Milliken; Editing by Kevin Liffey, Alexandra Hudson)