Britain's new Prime Minister Andy Burnham, who promised 'radical change' in the United Kingdom, unveiled his new government on Monday, excluding close allies of his predecessor Keir Starmer, after taking office as Britain's seventh prime minister since 2016.

In an unexpected move, he appointed former Defence Secretary John Healey, who left Starmer's government due to budget disagreements, as Finance Minister to replace Rachel Reeves. Healey faces a daunting task due to slowing economic growth and pressure on public finances from high debt levels.

Outgoing Energy Secretary Ed Miliband was appointed Foreign Secretary. Meanwhile, Shabana Mahmood, known for her tough stance on immigration, retained her position as Home Secretary.

Ministers close to Keir Starmer were excluded, such as outgoing Justice Secretary and Deputy Prime Minister David Lammy, outgoing Finance Minister Rachel Reeves, and former Trade Secretary Peter Kyle.

Burnham pledged to launch a 'ten-year plan' and bring about 'wide-ranging change' in the United Kingdom, which needs to be restored to stability, and promised immediate action to address the cost-of-living crisis.

Burnham (56), who until last June was Mayor of Greater Manchester in northwest England, replaced outgoing Prime Minister Keir Starmer, who entered 10 Downing Street in July 2024 after a landslide Labour victory in the general election that ended 14 years of Conservative rule. King Charles received Burnham at Buckingham Palace and asked him to form a new government.

King Charles shakes hands with Andy Burnham at Buckingham Palace before inviting him to form a new government on Monday (Reuters)

In his first speech as Prime Minister, Burnham vowed to launch 'the broadest process of change in the country in four decades' and work to restore a sense of hope to citizens.

From outside the Prime Minister's residence, he affirmed that 'the United Kingdom must show the world its ability to restore stability,' adding that he wants to work on reviving the country's industrial sector, building more social housing, and establishing a 'new economy' with a greater role for the state in overseeing essential services.

He focused on social issues, promising to act quickly 'to ease burdens on citizens and help them cope with the high cost of living,' without announcing specific measures.

In the speech he delivered alongside his wife Mary France van Heel, his children, and his mother, he stressed that combating homelessness would be a top priority. He chose his first official visit on Monday morning to a center that shelters homeless people.

Burnham became Labour Party leader last Friday after receiving support from about 95% of its MPs, which qualifies him to become Prime Minister given the party's majority in parliament.

Outgoing Prime Minister Keir Starmer delivers a speech as he leaves 10 Downing Street in London on Monday (AP)

Several foreign leaders quickly congratulated Burnham, including French President Emmanuel Macron, German Chancellor Friedrich Merz, and Australian Prime Minister Anthony Albanese. European Council President António Costa expressed his eagerness to strengthen 'cooperation' between London and Brussels.

Burnham said he would have a phone call with Ukrainian President Volodymyr Zelensky on Monday to reaffirm Britain's full commitment to supporting Kyiv against Russia.

Stronger and fairer

Starmer had announced his resignation as Prime Minister on June 22 after a decline in his popularity and growing opposition within Labour ranks due to a series of controversial decisions and the party's defeat in some local elections.

Starmer expressed pride in what his government achieved during its two years in power, saying in his final speech outside 10 Downing Street that the UK had become 'stronger and fairer' than when he took office.

Andy Burnham and his wife Mary France enter 10 Downing Street in London on Monday (EPA)

He said the United Kingdom 'today is stronger and fairer than it was two years ago.' He added in his speech, surrounded by his aides and several ministers: 'I leave smiling, and I leave proud of all we have achieved.'

Starmer then went to Buckingham Palace where he formally tendered his resignation to King Charles III, who accepted it, according to a palace statement, noting that Starmer's wife Victoria accompanied him.

Burnham immediately began forming his government. There are many questions about the Finance Minister who will succeed Rachel Reeves. Names have been put forward for this portfolio, including Shabana Mahmood, who held the Home Office portfolio and pursued a very strict policy on immigration.

Andy Burnham helps prepare breakfast at a center that shelters homeless people in London on Monday (AFP)

Burnham faces a set of challenges that brought down his predecessors, primarily slowing economic growth and the rising cost of living. The incoming Prime Minister has only a narrow margin to address this situation due to high public debt.

Labour is betting that Burnham, nicknamed the 'King of the North' for winning three consecutive elections for Mayor of Manchester, represents the best chance to curb Nigel Farage, leader of the right-wing Reform UK party. Polls indicate that this anti-immigration party is the front-runner to win the next general election expected in 2029.

'No clear plan'

Conservative opposition leader Kemi Badenoch criticized Burnham's assumption of office 'without presenting a clear plan' for the country's future, in a message addressed to him.

Burnham previously failed twice to win the Labour leadership, first in 2010 and again in 2015, so he chose to leave London and return to the north where he comes from. There, he was elected Mayor of Greater Manchester in 2017.

Through his role as head of local government in this region, which was known for industry and has experienced economic renewal, he became one of the most popular political figures in the UK.

Among the most notable things Burnham said on Friday was that he wants greater decentralization of power by transferring more powers to other cities, in an effort to drive the British economy.

Andy Burnham speaks with a homeless woman on the street during his visit to a center that shelters homeless people in London on Monday (AFP)

British media expected Burnham to give the green light for developing oil and gas fields in the North Sea.

However, US President Donald Trump, who has repeatedly called for investing in North Sea resources, did not wait for an official announcement to express his satisfaction, writing on his platform Truth Social that this would transform the UK from 'a poverty-stricken disaster' into 'one of the richest countries on the planet.'

Before entering the Prime Minister's residence, Burnham indicated that his first contacts with foreign leaders would include Trump and Ukrainian President Volodymyr Zelensky, affirming that the UK's support for Ukraine would remain 'steadfast.'