Andy Burnham sworn in as UK PM, pledges £340m to end homelessness

Andy Burnham was officially appointed Prime Minister of the United Kingdom on Monday, July 20, 2026, succeeding Keir Starmer following a swift Labour leadership contest. In his first address at Downing Street, Burnham announced that ending rough sleeping would be his immediate priority, with the government allocating an additional £340 million ($457 million) to tackle homelessness. He stated: "I will soon go through that door behind me and issue my first instruction – to end rough sleeping in our country."

Burnham outlined a broader agenda focused on economic reform and devolution of power from London to regional governments. He pledged to "build a new economy" and rewrite the political and economic model governing the country, emphasizing support for young people entering the workforce, increased construction of council homes, and welfare reform tied to cost-of-living relief. His government has scrapped the Digital ID scheme, signaling a shift in priorities. Deputy Leader Lucy Powell stated Burnham's vision represents a "bolder and more ambitious" implementation of Labour's 2024 election manifesto, describing his approach as addressing an economy "that has not worked for ordinary people."

The government announced plans to take water and energy companies under public control and establish new North Sea oil and gas drilling as part of an economic package. Powell characterized this as a "change of emphasis" rather than policy reversal, emphasizing pragmatism on energy. However, former Conservative minister Jacob Rees-Mogg countered that private capital is essential for the water industry, as no other funding is available.

Burnham's cabinet appointments reflect his policy priorities: John Healey becomes Chancellor of the Exchequer (Finance Minister), Ed Miliband is Foreign Secretary, Wes Streeting is Defense Secretary, and Angela Rayner is Housing Secretary. On his first day, Burnham made calls to US President Donald Trump and Ukrainian President Volodymyr Zelensky, emphasizing commitment to UK defence and continued support for Ukraine.

The 56-year-old former Mayor of Greater Manchester now becomes Britain's seventh Prime Minister in a decade, inheriting significant fiscal challenges including rising government debt, limited spending room without tax increases, and Labour's declining popularity against the right-wing Reform UK party. Burnham has previously promised similar homelessness initiatives in Manchester, where rough sleeping numbers have fluctuated since 2017. His premiership begins amid mixed assessments: supporters see his regional background and reform agenda as refreshing, while critics question whether ambitious pledges lack concrete timelines and whether his Manchester-scale successes will translate nationally.