Prime Minister Andy Burnham, who replaced Keir Starmer before the summer recess, is operating with a mandate and legislative programme inherited from the previous administration. His government faces squeezed budgets within a sluggish economy and a turbulent global climate.
Burnham's fiscal options are constrained by Labour’s 2024 manifesto, which prohibits broad-based tax rises, and by the bond market's vigilance regarding spending. He has declared a moral mission to eliminate rough sleeping and introduced policies such as capping bus fares and cutting VAT on fuel bills to address the cost of living.
Keir Starmer, the former Prime Minister, announced today, 1 September 2026, his intention to stand down as an MP. Meanwhile, Kemi Badenoch, the opposition leader, has replaced her shadow chancellor, Mel Stride, with Andrew Griffith, aiming to sharpen the Conservative attack on the economy.