Andy Burnham speaks after being confirmed as the Labour Party's new leader and the country's next prime minister during 'Labour’s Special Conference' in central London, Britain, 17 July 2026. EPA/Henry Nicholls

Democracy World

Burnham becomes UK prime minister with pledge to restore stability and cut energy bills

2 minutes read

The former Manchester mayor inherits a stagnant economy, record electricity prices and questions over Labour's climate and Brexit red lines.

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Andy Burnham has taken office as the United Kingdom’s Prime Minister, appointed by King Charles III to succeed Keir Starmer and pledging a 10-year plan to rebuild the country’s stability.

In his first speech outside Downing Street, delivered without a lectern, he promised the biggest changes in 40 years and said his first instruction on entering Number 10 would be to end rough sleeping. “Britain needs to show the world that we can regain our stability once again,” he said.

Burnham became Britain’s seventh prime minister in a decade, taking over after Starmer resigned in June, two years after a landslide election win. He returned to Parliament only last month by winning the Makerfield by-election in northwest England, and was elected Labour leader unopposed with nominations from 379 of the party’s 403 MPs.

The former mayor of Greater Manchester has built his pitch around devolving power from London to the regions, an approach he calls “Manchesterism,” alongside a return to public ownership. He said measures to ease the cost of living could come as early as tomorrow.

Lower energy costs sit at the centre of those plans, with British industrial electricity prices running about 45 per cent above the Group of Seven (G7) average, according to industry figures. Suppliers including Octopus Energy have urged him to overhaul the market, arguing reform could cut a typical household bill by up to £189 (€218) a year.

His energy stance has drawn scrutiny, though. He is reported to be open to new North Sea oil and gas drilling, a move that would conflict with Labour’s 2024 manifesto and its net zero commitments.

Doubts also surround his economic team, with Rachel Reeves widely expected to be replaced as Chancellor by Home Secretary Shabana Mahmood. Investors have questioned Burnham’s plans for greater public control of utilities and housing.

His arrival has revived speculation over EU-UK relations, with analysts urging him to review Labour’s red lines ruling out the single market, a customs union and free movement. He said he would tell Ukraine’s President Volodymyr Zelensky that British support would stay resolute, and planned an early call with US President Donald Trump.

Burnham faces the same pressure that undid his predecessor. The rise of Nigel Farage’s right-wing Reform UK, which has led national polls, has drained support from Labour, and he said his party could not beat Britain’s resurgent right while consumed by infighting.

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