From Mayor
to Prime
Minister

Andy Burnham enters Downing
Street with a pledge to devolve power,
reshape the economy and redefine
Labour’s agenda, explains
Scott Dodsworth, Senior Partner &
Managing Director at GK Strategy

Andy Burnham arrived in Downing Street at lunchtime on Monday, fresh from an audience with His Majesty, who invited him to form a new government. This followed the resignation of Sir Keir Starmer, who had served as Prime Minister for just two years. 

Behind the famous black door, the new Prime Minster faces the same foreign policy challenges and fiscal pressures that buffeted and constrained his predecessor. The real test will be how much he and his ministers remain singularly focused on this purpose and the extent to which they are able to deliver the change that Labour promised on entering office in July 2024.

Key appointments to the Cabinet were announced in the early evening on Monday. We now know that Shabana Mahmood remains as Home Secretary, recognised as doing a good job on immigration and illegal migration. Well known to the diplomatic community in London, the former Defence Secretary John Healey has been promoted to Chancellor of the Exchequer, a powerful finance minister role that will reassure the financial markets and be good for defence and security. Ed Miliband has been appointed Secretary of State for Foreign, Commonwealth and Development Affairs. Miliband is well known as former leader of the Labour party, and since the election two years ago has served as Secretary of State for Energy Security & Net Zero. We are likely to see Miliband carry forward his championing of the climate agenda into his new role at King Charles Street. 

Given the geopolitical environment and a new Prime Minister focused on domestic policy, the appointment of Ed Miliband as Foreign Secretary frees Burnham to delegate global issues to his foreign minister and Jonathan Powell, his National Security Adviser. This will certainly help in the short-term but could cause challenge and tensions as the Prime Minister (almost) inevitably develops a stronger view of foreign affairs. 

The new Defence Secretary is Wes Streeting, the skilful former Health Secretary who resigned from Starmer’s government after the local and national election defeats in May. Streeting is well placed to apply his early reform of health to defence, not least in defence procurement at all levels. 

The operation of No.10 will be critical to the early success of the government. Under Keir Starmer, we saw how difficult it can be to recover from a turbulent, disorganised first 100 days in office. As well as the National Security Adviser, Varun Chandra is also remaining in post as Chief Adviser on business, investment and trade. Chandra has spent a great amount of his time on the US-UK relationship; this will be of value to the new Prime Minister.

In the domestic arena, Andy Burnham argues that too much of the country’s economic and political power has been privatised and centralised, and much of the country has been in decline. Building on his speech three weeks ago where he announced the creation of No10 North, Burnham reiterated his intention to bring more power – and more growth - into every postcode across the country. This will also include bringing more of public essentials like energy, water and housing into public control. 

The new Prime Minister says that the ‘care of people’ will be at the heart of everything he does – with cost-of-living support coming as soon as Tuesday. He also set out priorities to change the education system and get more people into work. Interestingly he does not mention wider challenges to the NHS or social care – suggesting that education will be the primary focus for him. 

The Prime Minster has said many times that he will conduct the biggest social housing construction programme since the post war period, and his immediate instruction to officials to end rough sleeping. It is clear he is seeking to build a more preventative state – one that invests in success for people to live well. Burnham says that these measures are the fair way to bringing the welfare bill down, rather than what he has called ‘crude cuts’ without addressing the fundamentals of the economy that cause this and lead to huge societal and economic costs.

In a typically calm handover of power, the country’s 59th Prime Minster – who was only re-elected to the Commons a month ago – has moved from Mayor of Greater Manchester to the most powerful political job in the country. The coming days and weeks ahead will commit plans to paper as the country and wider world keep watch.

GK Strategy is a London-based political advisory and public affairs consultancy headquartered in Westminster. It advises businesses, investors and organisations on navigating UK politics, government relations, regulation and public policy. For more detailed analysis, by sector, or for general political and public affairs updates, please email Scott Dodsworth, Senior Partner at GK Strategy on scott@gkstrategy.com