UK Prime Minister Burnham Holds First Cabinet Meeting, Pledges Action on Economy and Cost of Living

LONDON: Newly appointed British Prime Minister Andy Burnham convened his first Cabinet meeting on Tuesday, pledging a unified approach to government and placing economic recovery and easing the cost-of-living crisis at the top of his administration’s agenda.

Addressing ministers at 10 Downing Street, Burnham emphasized a “one-team approach” as he set out his government’s priorities, including revitalizing the economy, supporting households facing financial pressures, and delivering reforms aimed at reducing regional inequalities.

The Prime Minister announced an immediate tax cut on domestic electricity bills, financed by scrapping the previous government’s proposed digital identity card programme. He said the measure is intended to provide direct relief to families struggling with rising living costs while maintaining fiscal discipline.

Burnham also unveiled a significantly reshaped Cabinet, replacing several senior allies of former Prime Minister Keir Starmer. Former Defence Secretary John Healey was appointed Chancellor of the Exchequer, while Ed Miliband became Foreign Secretary, Wes Streeting was named Defence Secretary, and Angela Rayner took over the Housing portfolio.

The new Prime Minister acknowledged that difficult financial decisions lie ahead, citing high public debt, sluggish economic growth, and continued pressure on public finances. He reiterated his commitment to decentralization, industrial renewal, increased housing development, and measures to tackle homelessness as part of a broader strategy to stimulate long-term economic growth.

Burnham also began engaging with international leaders, including U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskyy, reaffirming Britain’s commitment to NATO and international security. His first day in office also coincided with heightened security concerns after a Russian warship reportedly conducted live-fire drills near UK waters.

The Cabinet meeting marked the beginning of a new chapter in British politics, with Burnham seeking to project stability and economic renewal following a period of political turbulence and growing public concern over living standards.