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Andy Burnham becomes UK Prime Minister, pledges cost-of-living relief and economic reform

Andy Burnham has been appointed UK prime minister after Keir Starmer's resignation, pledging economic reforms, cost-of-living support and continued backing for Ukraine.

July 20, 2026
in Business, Featured Stories
Andy Burnham becomes UK Prime Minister, pledges cost-of-living relief and economic reform

LONDON (Web Desk) — Andy Burnham was officially appointed Prime Minister of the United Kingdom on Monday after King Charles III invited him to form a new government following the resignation of Keir Starmer, Buckingham Palace announced.

Burnham accepted the King’s invitation and became Britain’s new prime minister, taking office at a time of economic challenges, rising living costs and growing political pressure ahead of the next general election.

Burnham Promises Immediate Cost-of-Living Measures
In his first speech outside 10 Downing Street, Burnham said his government would introduce measures this week aimed at easing the cost-of-living pressures facing households.

He also announced plans to present a broader 10-year national strategy later this year, focused on economic growth, housing, education and public services.

“Britain needs to regain its stability,” Burnham said, adding that his administration would work to strengthen the economy while remaining committed to fiscal discipline.

Among his priorities, Burnham pledged to expand affordable housing, improve mental health support, reform education and create more employment opportunities for young people.

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Cabinet Changes Begin
The change in leadership also brought changes to the Cabinet, with Rachel Reeves stepping down as finance minister. She congratulated Burnham and expressed support for the new government, while appointments to key ministerial positions were expected later in the day.

Foreign Policy Priorities
Burnham indicated that his first conversations with international leaders would include US President Donald Trump and Ukrainian President Volodymyr Zelensky.

He reaffirmed that the United Kingdom would continue supporting Ukraine, saying Britain’s position on the conflict would remain unchanged under his leadership.

Pakistan Congratulates New UK Leader
President Asif Ali Zardari congratulated Burnham on assuming office and expressed hope that Pakistan and the United Kingdom would further strengthen their long-standing bilateral relationship.

In his message, the president reiterated Pakistan’s commitment to dialogue and peaceful diplomacy and expressed hope for greater international efforts to reduce regional tensions.

Prime Minister Shehbaz Sharif also extended congratulations, saying he looked forward to working closely with Burnham to deepen cooperation in trade, investment and other areas of mutual interest.

He noted that the large British Pakistani community continues to serve as an important bridge between the two countries.

International Leaders Welcome Appointment
Leaders from Europe and Ukraine also welcomed Burnham’s appointment.

European Commission President Ursula von der Leyen said she hoped to continue strengthening cooperation between the European Union and the United Kingdom, particularly on security and economic issues.

European Council President Antonio Costa also expressed support for expanding EU-UK cooperation.

Ukrainian President Volodymyr Zelensky congratulated Burnham and thanked Britain for its continued political and defence support, expressing confidence that bilateral cooperation would remain strong.

Challenges Ahead
Burnham inherits an economy facing slow growth, elevated public borrowing, persistent cost-of-living pressures and demands for reforms in public services. His government is also expected to address immigration, housing shortages and broader fiscal challenges.

Political analysts say the new prime minister will have limited time to deliver on his promises before the next general election, making the coming months critical for his administration.

Burnham has said his government intends to pursue a different economic approach by prioritising early investment, improving public services and supporting long-term growth while maintaining financial responsibility.

Tags: Andy BurnhamBritain politicsKeir StarmerLabour PartyPakistan UK relationsRachel ReevesUK GovernmentUK Prime MinisterUkraineworld news

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