Andy Burnham starts as UK PM facing cost crisis and global flashpoints

London,UPDATED: Jul 21, 2026 10:24 IST

Andy Burnham begins his first full day as UK prime minister on Tuesday after taking office with strong public enthusiasm and a long list of immediate challenges. He replaces Keir Starmer at a time when Britain is dealing with a weak economy, high living costs, pressure on public services and major foreign policy demands.

Burnham, who spent most of the past decade as mayor of Greater Manchester and returned to Parliament in a special election last month, now moves from running a region of 3 million people to leading a country of 70 million. His government will have to deal with domestic pressures as well as wars in Ukraine and the Middle East, while also managing ties with US President Donald Trump.

Domestic issues are at the top of Burnham's agenda and he has said he will set out his plan on Tuesday on how the government will fund efforts to lower living costs. He inherits an economy that had been improving until the Iran war disrupted forecasts, with growth now widely expected to slow sharply this year while inflation rises.

A central part of Burnham's platform is decentralising government by directing more money to local authorities and bringing some services back under public control after they were privatised four decades ago. His business-friendly socialist approach, known as "Manchesterism", aims to combine private and public money to invest in transport, housing and infrastructure, though it could take years to put in place.

Joshi Herrmann, founder of Manchester news site The Mill, who has covered Burnham for years, said the new prime minister may be able to ease pressure on some people who are struggling. "But if the essay question is who can get economic growth and who can remodel the economy in the post-Brexit, post-financial crash era, I'd be very surprised if the answer to that question is Andy Burnham," Herrmann said.

Burnham has limited room to increase spending because Starmer was elected on a manifesto that ruled out rises in the government's main tax rates. Burnham has said he would not rule out a wealth tax, telling Gary Lineker on the Goalhanger podcast last week that the government "might be having to ask for a little more".

On foreign policy, Burnham has little direct experience but has promised to honour commitments to NATO, support the UK's nuclear deterrent and remain a strong ally of Ukraine. He has said he will maintain the so-called special relationship with the US, though that may depend on how he handles Trump, who had praised Starmer at first before turning critical over Iran and North Sea oil drilling.

Trump recently reacted positively to British media reports that Burnham could back some North Sea drilling, saying people in Aberdeen, Scotland, were "dancing in the streets", though the report said he may have overstated Burnham's position. Burnham has criticised Trump in the past, but has said he would deal with him respectfully while also being willing to disagree. The two leaders spoke on Monday in one of Burnham's first calls with a foreign leader. Burnham's office said he told Trump he was committed to securing shipping in the Strait of Hormuz and ensuring the defence and security of the UK and its allies.

Burnham will also face pressure on defence spending. Trump has urged NATO members to raise military spending significantly, and Burnham is expected to come under pressure to go beyond the targets set by Starmer. The current defence plan proposes a 15 billion pound spending increase, smaller than military leaders had sought and criticised for not being fully funded under the present budget. It is also unclear how far Burnham will go in improving ties with the European Union after Brexit, though Starmer had already been trying to rebuild relations while ruling out rejoining the bloc.

Another sensitive issue is Israel's war with Hamas. Burnham has criticised Starmer's approach to the war and the devastation in Gaza, and has said the UK would consider further sanctions against Israelis involved in violence in Gaza and illegal settlements in the West Bank. The issue remains delicate for Labour, which had earlier been found to be tainted by antisemitism before Starmer took over, while also depending on support from a large Muslim population. Burnham's remarks drew criticism from Jewish groups, but pro-Palestinian groups have also criticised him for not calling Israel's bombardment of Gaza a genocide.

Migration is another difficult issue. Burnham did not mention immigration in his first speech as prime minister, despite it being a major concern for many British voters. Like much of Europe and other wealthier countries, the UK has seen migrants arrive from areas affected by war, famine, climate-related crises, political persecution and poverty. Concern over people crossing the English Channel in overcrowded inflatable boats has helped Reform UK win recent local and regional elections, leading Labour to remove Starmer as leader.

Burnham has largely said he would follow Labour's existing approach on migration, which points to a fall in net migration from more than 900,000 in 2023 to 171,000 last year. Channel crossings are down 40 per cent this year compared with the same period in 2025. He wants to keep reducing net migration and voted for a bill aimed at cutting Channel crossings further and moving people towards safer and legal routes.

As Burnham starts his first full day in office, he faces a wide agenda that runs from economic revival and public services to defence, diplomacy, Gaza and migration. The scale of the task is much bigger than the one he handled in Greater Manchester, with pressure mounting at home and abroad.

With PTI Inputs

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