Wire flash
PoliticsUK PM Burnham vows to 'build a new economy', announces cost-of-living measures tomorrow
Editorial responsibility
- No named human review is recorded for this page.
- Source reporting is collected, normalized, translated or condensed automatically when needed.
- Automatically published source-backed update
Andy Burnham, the new Labour Prime Minister, delivered his first speech outside Downing Street, vowing to 'build a new economy' and announce cost-of-living measures the following day. He pledged to put life's essentials under stronger public control, revive industrial heartlands, and reduce the welfare bill, while maintaining defence commitments. Burnham took office after Keir Starmer resigned, describing his work as done. The new PM faces a grim economic inheritance due to escalating Middle East hostilities, which have driven UK borrowing costs higher, with the 10-year gilt yield near 5% amid fears of an oil shock stoking inflation.
Source report
Andy Burnham addressed the nation from the steps of Downing Street (Ben Birchall/PA Wire)
Andy Burnham has vowed to "build a new economy" in his first speech as Prime Minister, pledging to announce a raft of measures to help households with the cost of living as soon as tomorrow.
Speaking on the steps of Downing Street, the new Labour leader said his government would put life's essentials "back under stronger public control" and revive the country's industrial heartlands. He also committed to previously announced defence pledges and to "bring the welfare bill down".
"We will make this moment a circuit breaker for Britain, bringing forward the biggest changes in the last 40 years, a new political model and a new economic model," Burnham said.
He added: "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 where we put life's essentials back under stronger public control."
The remarks were the former Manchester mayor's first as Prime Minister, having been sworn into the highest office in the country by the King just minutes before addressing the nation. Keir Starmer formally tendered his resignation earlier on Monday, telling voters that "his work was done" and that it had been the "privilege of [his] life" to serve in Downing Street.
Economic Challenges Ahead
The flare-up of hostilities in the Middle East means Burnham faces a grim economic inheritance. The UK's borrowing costs remained elevated throughout his first morning as Prime Minister, following a weekend in which:
- The US announced two more nights of strikes
- Traffic in the Strait of Hormuz ground to a halt
The 10-year gilt yield was trading at just below five per cent at the culmination of Burnham's speech, kept high on fears that the oil shock will further stoke inflationary pressures in the economy.
This is a breaking news story, more to follow.
Source
City AMWestern
Part of this Story
UK PM Starmer Resigns; Andy Burnham Favored to Succeed