Andy Burnham has been officially sworn in as the new Prime Minister of the United Kingdom after being received by King Charles at Buckingham Palace. His appointment makes him the seventh prime minister to lead the UK in ten years, replacing Keir Starmer who resigned following a series of political scandals and local election defeats.
In his maiden speech as Prime Minister, Burnham vowed to make his administration a “breaker for the past” for the UK economy by introducing a new political and economic model. He promised to restore public control of essential services and relaunch the country’s industrialisation process through government procurement to boost local industry.
Burnham’s new economic approach also includes a plan to accelerate oil and gas exploration in the North Sea, a move welcomed by US President Donald Trump. The energy strategy is aimed at reviving UK GDP growth, which is projected to slow to 0.8% by 2026, while also tackling soaring energy costs.
To ease the jitters in financial markets, Burnham is reportedly set to appoint Shabana Mahmood as the new Chancellor of the Exchequer. The move is seen as a pragmatic move to appease government bond (gilt) investors who have previously been concerned about Burnham’s left-wing approach to managing the country’s spending and public debt.
The reaction of UK financial and bond markets has so far been calm and steady compared to the turmoil of the past few months. Economic analysts assume that investors do not expect any drastic policy changes in the near future, although the long-term fiscal trajectory of the new administration remains under scrutiny.
