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

Britain's new Prime Minister Andy Burnham on Monday promised to set out new measures to help with the cost of living this week before setting out a new 10-year plan for the country later this year.

"Britain needs to show the world that we can regain our stability once again," Burnham said in a speech outside 10 Downing Street, shortly after being sworn in as leader following his meeting audience with His Majesty King Charles III, and shortly before speaking over the phone for the first time with US President Donald Trump.

"We have not been good enough, and we need to be better."

Promising Britons "some breathing space now", he said the government would set out some measures to tackle the high cost-of-living, and how it plans to fund them.

Further out, he said: "We will help more young people into work by changing the education system and giving them more support, more mental health support, and we will build more council homes.

"That is the fair and sustainable way to bring the welfare bill down, to meet our fiscal rules, and to honour our commitments on defence to our international partners."

Earlier, his Labour Party colleague, outgoing premier Keir Starmer, made his farewell speech outside 10 Downing Street, telling supporters that "my work is done" and that he was leaving with "good grace" and a "smile".

BURNHAM TO LAY OUT NEW GOVERNMENT PATH

During his speech, Burnham set out a path for "a more stable and responsible politics".

Presenting his appointment as a moment of "reflection", he said it was time to be honest about Britain's challenges, and that only political stability could deliver improvements.

On Friday, Burnham described his election to become Labour leader as "the most significant change moment in our politics for 40 years".

He promised to radically change the political system to quickly raise living standards and help a country hungry for change become one where "life is more affordable and all people and places are lifted from where they are now".

He directed that message at Labour lawmakers, who see him as one of the few politicians capable of tackling the threat from veteran Brexit campaigner Nigel Farage's populist Reform UK - something they doubted the unpopular Starmer could do.

Burnham's first challenge will be the appointment of his cabinet team and especially his finance minister. Friction in this crucial partnership at the heart of government has led to the downfall of previous administrations.

An early frontrunner for the position, energy security and net zero minister Ed Miliband, has been the object of some hostile briefing and interior minister Shabana Mahmood now appears to be favourite for the job.

Burnham urged his party on Friday to ignore "speculation" and said he had not yet decided on his team.

His early policy decisions will also face scrutiny.

On Sunday, plans were scrapped for all employees to be required to hold a digital identity document, a scheme designed to tackle illegal migration but deemed a "fiasco" by a cross-party committee of lawmakers.

More attention will be paid to decisions on taxation and spending, oil and gas, and underperforming utility companies, for which Burnham wants stronger public control.

Thames Water, Britain's largest water company, is weighed down by debt and under fire for frequent sewage leaks.

On Sunday, Deputy Labour Leader Lucy Powell, Burnham's ally, suggested Thames Water could be brought under "special measures", meaning it would operate under government control.

"He wants to refocus and reprioritise the government's resources, the government's attention onto his priorities of tackling the cost of living, really rewiring the way the country, the economy works," she told Sky News.