Andy Burnham became Britain's seventh prime minister in a decade on Monday, pledging to reshape its politics to deliver a new economic model and revive a nation "fed up" with a revolving door of leaders.

In front of dozens of supporters outside his new office and residence at 10 Downing Street, Burnham said politicians had failed to bring the stability needed to raise living standards, something he said he would change, with both immediate measures and a longer-term plan to be drawn up later this year.

Speaking without notes, Burnham delivered a domestic-focused speech aimed at offering hope to a nation that has, like many European countries, struggled for years with soaring prices and anemic economic growth. He did not touch on foreign affairs.

"I know people at home are fed up with politics. I hear you, and I want to be honest with you, we have not been good enough, and we need to be better," he said, dispensing with the lectern that prime ministers generally use.

Burnham pledged to use his premiership as a "circuit-breaker for Britain," arguing that a new model was needed to rebuild the country, which has been in political turmoil since voting in 2016 to leave the European Union.

British Prime Minister Keir Starmer delivers a statement outside 10 Downing Street before resigning and transferring power to new Labour Party leader Andy Burnham, in London, Britain, July 20, 2026.
British Prime Minister Keir Starmer delivers a statement outside 10 Downing Street before resigning and transferring power to new Labour Party leader Andy Burnham, in London, Britain, July 20, 2026. (credit: ISABEL INFANTES/REUTERS)

Deputy PM, finance minister resign

UK Deputy Prime Minister David Lammy and finance minister Rachel Reeves left the government after Burnham took over as prime minister.

In a statement on X/Twitter, Reeves wished Burnham and his cabinet success. "You have my full support, and I will continue to play my part in helping this Labor government deliver the change the country needs," she said.

Burnham appoints new Foreign, Home Secretary 

Burnham appointed former defense minister John Healey as Chancellor of the Exchequer, considered the second-highest position in government after the prime minister.

Former Labour party leader, Jewish politician Ed Miliband, was appointed as Foreign Secretary, while Home Secretary Shabana Mahmood was kept in her role.

Burnham promises 10-year plan, but not for several months

Just over an hour after his predecessor and Labor colleague Keir Starmer had made his farewell speech to say "My work is done," the 56-year-old former Greater Manchester mayor entered Downing Street, where he said his team would tackle his first priority: to end rough sleeping.

The major challenges will then lie ahead.

Burnham must first unveil his cabinet, already the subject of much debate in the Labor Party, and then tackle a long list of problems ranging from high levels of illegal immigration to underperforming utility firms.

Starmer, ousted by his own lawmakers a month ago, said his work as prime minister was "the privilege of my life" and that he wished Burnham every success, with "my full support".

Burnham did not refer to Starmer in his speech, instead focusing on how he will bring change. But he acknowledged that some of his program would take time.

In his short address, thin on policy detail, Burnham said he would release a plan for the next decade within months. Opposition parties suggested he would need to win a national election to get a mandate to implement it.

He also said he would set out immediate measures on Tuesday to ease everyday pressures on Britons, and explain how he will pay for them.

In the longer term, Burnham said he would build more public housing to help bring down welfare spending, which would help fund higher defense investment.

Labor party backs Burnham to overcome surging Reform UK

Labor lawmakers see Burnham as one of the few figures capable of tackling the threat from veteran Brexit campaigner Nigel Farage's populist Reform UK - something they doubted the unpopular Starmer could do.

A key first decision will be Burnham's choice of finance minister. Friction in this axis of government has brought down previous administrations.

An early frontrunner for the position, energy security and net zero minister Ed Miliband, has been the object of hostile briefing, and interior minister Shabana Mahmood now appears favorite for the job.

On Sunday, Burnham scrapped plans for all employees to be required to hold a digital identity document, a scheme designed to tackle illegal migration but deemed a "fiasco" by a cross-party committee of lawmakers.

More attention will be paid to decisions on taxation and spending, oil and gas, and underperforming utility companies, where Burnham wants stronger public control.