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UK PM Burnham promises cost of living measures, new 10-year plan

Burnham said costed relief measures will begin tomorrow as he seeks to ease household pressure and reset Britain with a 10-year economic plan.

  • On Monday, Andy Burnham officially became UK Prime Minister after King Charles III invited him to form a government at Buckingham Palace. Minutes later, the government announced £340 million in new funding to support at least 3,000 people and provide 1,200 homes over five years to tackle rough sleeping.
  • Keir Starmer resigned as Prime Minister after his government faced poor polling and weak local election results in May, serving just over two years following Labour's 2024 landslide victory. Burnham replaced him as Labour leader unopposed on Friday, securing nominations from 379 of 403 MPs.
  • Burnham pledged his administration would serve as a "circuit breaker for Britain," delivering sweeping reforms unseen in 40 years through new political and economic models. Speaking without a lectern at Downing Street, he vowed to devolve power into "every postcode in the land" by returning "life's essentials" to public control.
  • Crisis chief executive Matt Downie called Burnham's pledge "absolutely fantastic," signaling a shift from "simply managing homelessness." Conservative shadow housing secretary Sir James Cleverly questioned the policy, stating there was "precious little detail" on funding and whether other projects would be "salami-sliced to fill the gap."
  • Burnham's Manchester Housing First pilot housed over 450 people with 88% tenancy sustainment, with rough sleeping falling more than 57% since 2017. However, rough sleeping rose every year between 2021 and 2025, reaching 197 by 2025, raising concerns about scaling regional success nationally.
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In the first speech since his new residence, the premier promised to end the homeless. Learn more: Burnham sends Starmer away with honors but promises "laborism without complexes" on his way to Downing Street.

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Reuters broke the news in London, United Kingdom on Monday, July 20, 2026.
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