Andy Burnham to enter No 10 promising ‘breathing room’ on cost of living

Andy Burnham will enter 10 Downing Street promising to give people “breathing room” against the rising cost of living.

In his first speech as prime minister, Mr Burnham will urge the country to be honest about the challenges it faces and call for “reflection and resolution”.

He will also say he is “acutely conscious” that the UK has had seven prime ministers in the last decade, stressing the need for more stable and responsible politics and pledging to restore faith in government.

Allies of Mr Burnham said he will argue on Monday that political stability must deliver “tangible” improvements along with the “breathing room” on the cost of living he has previously promised.

Before the speech, Sir Keir Starmer is expected to make his own address outside No 10 before heading to Buckingham Palace to formally resign before Mr Burnham meets the King to “kiss hands” and be appointed prime minister.

Unlike Sir Keir’s statement announcing his resignation, neither speech is likely to be interrupted by protesters after the police banned amplified music outside Downing Street during the handover.

After his speech, Mr Burnham is expected to name his cabinet.

He has been tight-lipped about his selections, but is believed to have been weighing up either Energy Secretary Ed Miliband or Home Secretary Shabana Mahmood to be chancellor.

Monday caps a rapid transition for Mr Burnham, coming barely a month after he returned to Westminster following his victory in the Makerfield by-election.

Without a full leadership contest, the new prime minister is also yet to set out much of his agenda for his premiership.

He has said he wants to devolve power away from Westminster as one of his key priorities, driving that agenda with a new “No 10 North” in Manchester, which he is expected to visit later in the week.

Promising a “reset of priorities”, Mr Burnham has also announced he will scrap Sir Keir’s flagship digital ID programme to focus money and attention on the cost of living.

His first week in office is expected to see policies aimed at making people’s lives easier.

In an interview with The Times, Mr Burnham said he had already spoken to the Treasury about his planned announcements and stressed the importance of making people “feel better”.

Adding that complaints about frozen tax thresholds had been “lodged in his mind” since the Makerfield contest, he said: “So when people, they’re just characterising me as a tax raiser, well again, it’s never that simplistic is it? The breathing space point is a really serious one.”

Reports have suggested cost-of-living support could include action on energy bills, including allowing more oil and gas drilling in the North Sea.

Environmental campaigners have urged him to stick to Labour’s 2024 manifesto, which promised not to issue new licences for North Sea drilling, arguing they would not reduce energy bills.

Mr Burnham could also face a decision on whether to temporarily nationalise Thames Water as the firm struggles with a £20 billion debt pile.

He has already expressed support for greater public control of essential services, and Thames Water’s main creditors have said they are willing to discuss the issue with his new ministers in an effort to agree a rescue deal and avoid the business falling into a so-called “special administration regime”.

Another priority is likely to be reforming social care, which he has said is something he wishes to “expend political capital” on.

Liberal Democrat leader Sir Ed Davey has urged Mr Burnham to engage other parties to solve the “social care crisis”, calling for guaranteed rights for family carers, a universal safety net and protection against “catastrophic costs”.

Conservative leader Kemi Badenoch has also written to Mr Burnham, saying her party will work with him to cut the welfare bill and calling for him to rule out tax rises and back new oil and gas drilling.

Mrs Badenoch told Mr Burnham she would “never shirk” from holding him to account, adding: “You will enter office without having set out a clear plan on any of the issues facing our country.

“You have refused calls to come to Parliament for questions from MPs, and you have not submitted yourself to serious media scrutiny. This is not a promising start.”

Published: 20/07/2026 by Radio NewsHub