New Prime Minister Andy Burnham has pledged to 'build a new economy' during his tenure, with a suite of cost-of-living support measures for households expected to be unveiled as early as Tuesday. Speaking on the steps of Downing Street, the Labour leader outlined his vision for putting 'life's essentials back under stronger public control' and revitalising the nation's industrial heartlands.
New Political and Economic Model
Burnham described his government as a 'circuit breaker for Britain', promising 'the biggest changes in the last 40 years, a new political model and a new economic model'. He emphasised a shift of power away from Westminster, stating: 'We will take power out of here and carry it into every postcode in the land, so that they can do more, and in doing more, build a new economy.'
The former Manchester mayor chose to forgo a lectern in his maiden address, underscoring his commitment to redistributing political authority to local councils and devolved institutions. This initiative will form the cornerstone of a '10-year plan' to introduce a fresh political and economic framework aimed at improving Britain.
Cost-of-Living Measures and Industrial Revival
Burnham pledged to give voters 'breathing space' with several costed measures to ease the cost of living, expected to be announced as early as Tuesday. He said: 'We will... build a new economy where we put life's essentials back under stronger public control to make them affordable to you again, reindustrialising Britain using public procurement to back British industry.'
The new PM also restated his backing for the previous government's defence commitments and vowed to bring 'the welfare bill down'. The speech marked a departure from his predecessor, Sir Keir Starmer, who formally resigned earlier on Monday, stating that 'his work was done' and that serving in Downing Street had been 'the privilege of [his] life'. Starmer's resignation came after a period of economic challenges, including rising borrowing costs and global tensions.
Economic Challenges and Business Response
Burnham's first morning in office was marked by persistently high UK borrowing costs, with the 10-year gilt yield hovering at just under five per cent. This comes amid renewed conflict in the Middle East, with Washington announcing further strikes and shipping traffic through the Strait of Hormuz coming to a standstill. Concerns remain that escalating tensions will fuel inflationary pressures within the British economy.
Business leaders welcomed Burnham's pledge for a 10-year plan. Shevaun Haviland, director general of the British Chambers of Commerce, said: 'Our surveys show energy and taxation are squeezing businesses, hitting confidence and investment. Easing the cost of doing business will deliver the growth we all want to see.' She added: 'Getting growth in 'every postcode' of the UK is only possible if business is placed at the heart of the economic strategy. Any structural changes to the economy must deliver growth – and that happens when firms invest and expand.'
Call for Business-Centric Strategy
CBI chief Rain Newton-Smith also called for businesses to play a central role in Burnham's government. She said: 'Ambitious plans to improve the livelihoods of people across the country must be matched by action to get businesses thriving once again. Addressing the cost-of-living challenge needs to go hand in hand with tackling the cost of doing business, so we can deliver sustainable growth in jobs, wages and living standards.'
Burnham's address signals a new direction for the UK, with a focus on economic transformation and devolution. The 10-year plan, expected later this year, will lay out a path 'from where we are now to where I believe we all want Britain to be, wherever we're coming from, whatever party we support'.
