Andy Burnham, Britain's New PM, Vows to Tackle Cost-of-Living Crisis and Restore Stability

Andy Burnham was appointed Britain’s new prime minister on Monday, becoming the country’s seventh leader in a decade with a pledge to "rewire" the nation and refocus government efforts on the everyday issues that matter most to people, from the cost-of-living crisis to failing public services.

Following Keir Starmer’s farewell speech outside 10 Downing Street and his formal resignation to King Charles, the monarch invited Burnham to form a new government.

The 56-year-old, widely known as the 'King of the North' during his time as mayor of Greater Manchester, now faces the daunting task of addressing deep-rooted problems including struggling utility firms and weak economic growth.

Burnham will use his first speech as prime minister to set out a path for "a more stable and responsible politics", his office said in a statement.

Presenting his appointment as a moment of "reflection", he will say it is time to be honest about Britain’s challenges, and that only political stability can deliver meaningful improvements.

On Friday, Burnham described his election as Labour leader as "the most significant change moment in our politics for 40 years".

He promised to radically change the political system to quickly raise living standards and help a country hungry for change become one where "life is more affordable and all people and places are lifted from where they are now".

Burnham’s message resonated strongly with Labour lawmakers, many of whom see him as one of the few figures capable of countering the growing threat from Nigel Farage’s populist Reform UK party , a challenge they believed the unpopular Keir Starmer could not meet.

His first major test will be forming a cabinet, particularly the appointment of a finance minister. Tensions in this key partnership have contributed to the collapse of previous governments.

An early frontrunner for the role, energy security and net zero minister Ed Miliband, has faced hostile briefing, while interior minister Shabana Mahmood now appears to be the favourite.

Burnham urged his party on Friday to ignore "speculation" and said he had not yet decided on his team.

His early policy decisions are also expected to come under close scrutiny. On Sunday, the government scrapped plans to require all employees to hold a digital identity document — a scheme intended to tackle illegal migration but labelled a "fiasco" by a cross-party committee of lawmakers.

Greater attention will focus on upcoming decisions regarding taxation and spending, oil and gas policy, and underperforming utility companies, where Burnham wants stronger public oversight.

Thames Water, Britain’s largest water company, is heavily burdened by debt and has faced widespread criticism over frequent sewage leaks.

On Sunday, Deputy Labour Leader Lucy Powell, a close ally of Burnham, suggested Thames Water could be placed under "special measures", meaning it would operate under government control.

"He wants to refocus and reprioritise the government's resources, the government's attention onto his priorities of tackling the cost of living, really rewiring the way the country, the economy works," she told Sky News.

(inputs from Reuters)