Andy Burnham becomes UK PM after Starmer resignation

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Starmer Out, Burnham In: A New Era for Britain?

As widely anticipated, British Prime Minister Keir Starmer announced his resignation early Monday, paving the way for Andy Burnham, the popular former Mayor of Greater Manchester, to succeed him. Burnham’s path to the premiership required a risky gambit: running for Parliament in the swing district of Makerfield, west of Manchester. In this constituency, the far-right Reform party had recently outperformed Labour in local council elections.

Burnham transformed the by-election into a national referendum on his leadership and candidacy. He won by a resounding 20 points, making his succession inevitable.

What Makes Andy Burnham Different?

Economic Turnaround in Manchester

As three-term mayor of Manchester, Burnham transformed a depressed city into a national economic success story. Of all English cities, only Manchester has grown faster than London, and it has done so at three times the national average. His model, which he calls "business-friendly socialism," now serves as his blueprint for Britain.

A Superb Retail Politician

Burnham is a master of retail politics, drawing comparisons to New York’s Zohran Mamdani. His signature policy was renationalizing Greater Manchester’s bus system, expanding light rail, and introducing reduced or free fares. These are tangible changes that put money back in constituents’ pockets and endear a leader to the public.

An Outsider to Westminster

Burnham presents himself as a regular bloke, angry at the same issues that anger everyday Brits, and competent to fix them. His distance from the dysfunctional national Parliament in Westminster—which has cycled through seven prime ministers in ten years—is a key strength. His charming northern accent further reinforces his appeal.

A New Political Doctrine

In his campaign video for the Makerfield by-election, Burnham criticized both Conservative and recent Labour governments as "neoliberals" who have sold out working people. “Westminster doesn’t work for people in this part of the world and communities like this across the U.K.,” he declared. In a Labour Party divided between Corbynites, Blairites, and technocrats like Starmer, Burnham defines a new practical progressivism focused on producing wealth in a socially just fashion.

Can He Succeed?

Burnham takes office with significant goodwill among Labour MPs, who faced a blowout defeat under Starmer at the next general election (due by 2029). His method involves wide consultation, and if his program is plausible, he is expected to win overwhelming support.

Reassuring the Markets

In a shrewd early move, Burnham made clear he would not rely on deficit spending. This reassured the City (Britain’s Wall Street), preventing a rise in interest rates as his ascendancy became inevitable. The pound sterling also remained stable. As commentator Will Hutton recently wrote in The Observer, “The bulk of the Labour party is cohering around the cause of business-friendly socialism while respecting the imperative of keeping the bond markets on side.”

Fiscal Strategy: Investment Over Austerity

Unlike Starmer and his fiscally conservative chancellor Rachel Reeves, Burnham will not hold public investment hostage to fiscal balance. Sources in the Burnham camp indicate he plans major tax increases, but not on working people or small businesses. Likely targets include:

• Raising the tax rate on capital income to match top rates on wages and salaries.
• Increasing inheritance taxes.
• Changing the way land is taxed.

Investing in Britain’s Future

The proceeds from these new revenue sources would be directed toward improving the National Health Service (NHS), reinvesting in public transport, and forming partnerships with industry. The goal is to play to Britain’s latent strengths, including niche successes in tech, AI, high-end engineering (e.g., Rolls-Royce jet engines), and pharmaceuticals.

This strategy represents a long-overdue shift away from Britain’s excessive dependence on finance—a dependency that began in the late 19th century, was amplified under Margaret Thatcher’s deregulation, and continued under Tony Blair.

This story first appeared in our free Today On TAP newsletter, a weekday email featuring commentary on the daily news from Robert Kuttner and Harold Meyerson.