United Kingdom's New Prime Minister Andy Burnham gathered his Cabinet for its first meeting on Tuesday, promising a “one-team approach.” The former mayor of Greater Manchester is reshaping the government following the departure of supporters of former PM Keir Starmer. Burnham emphasized that his administration would focus on becoming a “cost-of-living government”, his aim being to alleviate the economic hardships felt by millions.
“We need to think every day about how we can relieve some of the pressure on people's shoulders, to give them that little extra sense that help is coming, so they can hold onto hope that things are getting better,” Burnham stated.
As a tangible first step towards this goal, he announced a tax cut on domestic electricity bills, expected to save the average household approximately 45 pounds ($60) annually. This cut will take effect on Oct. 1, funded by scrapping a plan for digital ID cards proposed by Starmer.
Burnham officially took office on Monday, replacing Starmer as leader of the governing Labour Party and becoming Britain’s seventh prime minister since 2016. Starmer resigned after two years in power, following a series of mistakes and policy reversals.
In his inaugural address as Prime Minister, Burnham pledged to ease the cost of living, return political power to local governments, energize British industry, and eliminate street homelessness—a challenging agenda amid the country’s sluggish economic growth.
Burnham acknowledged the financial challenges ahead during the Cabinet meeting, stating that the government would need to scrutinize its priorities closely.
Following his assumption of office, Burnham began the task of remaking the government, ousting Starmer’s finance minister, Rachel Reeves, in favor of John Healey. Healey, a former defense secretary who resigned in June, had previously criticized the Treasury for insufficient military spending amid rising global threats. He labeled the Treasury as “a dead hand on dynamic government” in an interview after his resignation.
Other key Cabinet appointments include Foreign Secretary Ed Miliband, Housing Secretary Angela Rayner, and Business Secretary Jonathan Reynolds, who will oversee an expanded portfolio that includes innovation and science. Louise Haigh, a close Burnham ally instrumental in his rise to leadership, has been named First Secretary of State and Chancellor of the Duchy of Lancaster.
Burnham has garnered substantial support from a party eager for new leadership to reverse its declining popularity under Starmer. However, there is some discontent following the removal of several senior ministers loyal to Starmer, including ex-Deputy Prime Minister David Lammy and former Business Secretary Peter Kyle.
Looking ahead, Burnham faces significant foreign policy challenges, having little experience in the area. He must navigate ongoing conflicts in Ukraine and the Middle East while managing relations with U.S. President Donald Trump, who had initially been supportive of Starmer before becoming critical of his leadership.
Burnham’s office reported an "extremely warm" conversation between Burnham and Trump during one of his first calls as Prime Minister, reinforcing commitments to defense and security. Trump later shared on social media that the discussion was productive and that the two leaders would meet soon to discuss mutual interests.
Additionally, Burnham spoke with Ukraine’s President Volodymyr Zelenskyy, French President Emmanuel Macron, German Chancellor Friedrich Merz, and leaders from the European Union and NATO. He indicated to NATO Secretary-General Mark Rutte that placing former defense chief Healey in charge of finances signaled a strong intent on defense matters.
In a reminder of the international tensions Britain faces, a Russian warship conducted a live-fire exercise in the English Channel on Burnham’s first day in office, monitored closely by the Royal Navy. The Ministry of Defense confirmed that the frigate Neustrashimy was observed conducting the exercise about 46 miles (74 kilometers) south of Plymouth, with the Navy prepared to safeguard U.K. national security.
New Defense Secretary Wes Streeting described the Russian action as “performative and irresponsible,” asserting that Russia should recognize the government's resolute stance against aggression both in Ukraine and towards allied nations.
As for relations with the U.K., Kremlin spokesperson Dmitry Peskov expressed skepticism that they would improve under Burnham's leadership.
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