Andy Burnham to Enter No 10 Promising 'Breathing Room' on Cost of Living
Andy Burnham Promises 'Breathing Room' on Cost of Living in First Speech

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. He will urge the country to be honest about the challenges it faces and call for “reflection and resolution.” Burnham will also stress the need for more stable and responsible politics, acknowledging that the UK has had seven prime ministers in the last decade, and pledge to restore faith in government.

Stability and Tangible Improvements

Allies of 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 Burnham’s speech, Sir Keir Starmer is expected to make his own address outside No 10 before heading to Buckingham Palace to formally resign. Burnham will then meet the King to “kiss hands” and be appointed prime minister. Unlike Starmer’s statement, neither speech is likely to be interrupted by protesters after police banned amplified music outside Downing Street during the handover.

Cabinet and Policy Agenda

After his speech, Burnham is expected to name his cabinet. He has been tight-lipped about his selections but is believed to be weighing up either Energy Secretary Ed Miliband or Home Secretary Shabana Mahmood for chancellor. Monday caps a rapid transition for 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 yet to set out much of his agenda. He has said he wants to devolve power away from Westminster, driving that agenda with a new “No 10 North” in Manchester, which he is expected to visit later in the week.

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Cost of Living and Energy Policy

Promising a “reset of priorities,” Burnham has 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, Burnham said he had spoken to the Treasury about his planned announcements and stressed the importance of making people “feel better.” He added that complaints about frozen tax thresholds had been “lodged in his mind” since the Makerfield contest, saying: “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 suggest 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.

Thames Water and Social Care

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 to agree a rescue deal and avoid the business falling into a “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.

Political Reactions

Liberal Democrat leader Sir Ed Davey has urged 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 written to 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. Badenoch told 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.”

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