Burnham promises to ‘build new economy’
Andy Burnham has said he will “build a new economy” during his tenure as Prime Minister, promising a raft of measures to help households with the cost of living will be announced as soon as tomorrow.
Speaking on the steps of Downing Street, the new Labour leader said his government would put “life’s essentials back under stronger public control” and revive the country’s industrial heartlands. He also reaffirmed his commitment to the Starmer administration defence pledges and promised to bring “the welfare bill down”.
“We will make this moment a circuit breaker for Britain, bringing forward the biggest changes in the last 40 years, a new political model and a new economic model,” Burnham said, adding: “We will take power out of here and carry it into every postcode in the land, so that they can do more, and in doing more, build a new economy where we put life’s essentials back under stronger public control.”
The remarks were the former Manchester mayor’s first as Prime Minister, having been sworn in to the highest office in the country by the King just minutes before making his speech. Keir Starmer formally tendered his resignation earlier on Monday, telling voters that “his work was done” and that it had been the “privilege of [his] life” to serve in Downing Street.
In a departure from previous addresses, Burnham opted against a lectern, and repeated his previously announced promise to shift the balance of political power away from Westminster to local authorities and devolved powers. The drive will form the central plank of a “10-year plan” to usher in a new political and economic blueprint to improve Britain.
“Later this year, I will bring forward a new plan for Britain, a 10-year plan,” he said, “laying out a path from where we are now to where I believe we all want Britain to be, wherever we’re coming from, whatever party we support.”
Burnham promised to give voters “breathing space” with several costed measures to help with the cost of living set to be announced as soon as Tuesday.
“We will… build a new economy where we put life’s essentials back under stronger public control to make them affordable to you again, reindustrialising Britain using public procurement to back British industry,” he said.
Burnham urged to make ‘cost of business’ top priority
The flare-up of hostilities in the Middle East has left Burnham facing a tough economic inheritance. The UK’s borrowing costs remained elevated throughout his first morning as Prime Minister, after the US announced two more nights of strikes over the weekend and traffic in the Strait of Hormuz ground to a halt.
The 10-year gilt yield was trading at just below five per cent at the culmination of the former Manchester mayor’s speech, kept high on fears that the escalating tensions will further stoke inflationary pressures in the British economy.
The boss of Britain’s largest industry body welcomed Burnham’s promise to announce a 10-year plan, saying businesses “thrive on long-term certainty”.
“Our surveys show energy and taxation are squeezing businesses, hitting confidence and investment. Easing the cost of doing business will deliver the growth we all want to see,” Shevaun Haviland, British Chambers of Commerce director general, said.
“Getting growth in ‘every postcode’ of the UK is only possible if business is placed at the heart of the economic strategy,” she added. “Any structural changes to the economy must deliver growth – and that happens when firms invest and expand.”
CBI boss Rain Newton-Smith echoed calls for businesses to play a key role in Burnham’s premiership. She said: “Ambitious plans to improve the livelihoods of people across the country must be matched by action to get businesses thriving once again.
“Addressing the cost-of-living challenge needs to go hand in hand with tackling the cost of doing business, so we can deliver sustainable growth in jobs, wages and living standards.”