Newly minted British PM Andy Burnham has pledged to break with the politics of the past to deliver a new economic model to benefit a country “fed up” ‌with a revolving door of leaders.

Burnham spoke to dozens of supporters outside his new office and residence at 10 Downing Street, as the UK’s seventh prime minister in a decade, late on Monday (local time).

He said politicians had failed to bring the stability needed to raise ‌living standards, promising to change that with immediate policies and a longer-term plan to be drawn up later this year.

“I know people at home are fed up with politics. I hear you, and I want to be honest with you, we have not been good enough and we need to be better,” Burnham said, speaking without notes and dispensing with the lectern that British prime ministers generally use.

“We will make this moment a circuit-breaker for Britain, bringing forward the biggest changes in the last 40 years. A new political model and a new economic model.”

“My work is done,” outgoing leader Keir Starmer said as he left Downing Street. Photo: AAP

Just over an hour after ⁠his predecessor and Labour colleague Keir Starmer made his farewell speech to say “My work is done”, the 56-year-old former Greater Manchester ​mayor entered Downing Street.

He said his team’s first priority would be to end rough sleeping.

But major challenges lie ahead.

Burnham must first unveil his cabinet – already the subject of much debate in the Labour Party – and then tackle a long list of problems ranging from anaemic economic growth to a cost-of-living crisis and underperforming utility firms.

Starmer, who was ousted by his own MPs about a month ago, said his work as PM was “the privilege of my life” and that he wished Burnham every success.

“He has my full support,” Starmer said.

Burnham did not refer to ⁠Starmer in his speech, instead focusing on how he will rip up much of what went before. But he acknowledged that some ​of his program would take time.

“Later this year, I will bring forward a new plan for Britain, a 10-year plan, laying out a plan from where we are now to where ​I believe we ‌all want Britain to be, wherever we’re coming from, whatever party we support,” he said.

But he said he would also give people “some breathing space now” by setting out measures ​on Tuesday to tackle the cost of living, and how he will pay for them.

Beyond tackling homelessness, Burnham said he would build more public housing to help bring down welfare spending, which would help fund higher defence investment.

On Friday, Burnham described his election to become Labour leader as “the ​most ​significant change moment in our politics for 40 years”.

He promised to radically change ​the political system to help a country hungry for change become one where “life is more affordable and ‌all people and places are lifted from where they are now”.

Labour MPs view him as one of the few politicians capable of tackling the threat from veteran Brexit campaigner Nigel Farage’s populist Reform UK – something they doubted the unpopular Starmer could do.

On Sunday, Burnham scrapped plans for all employees to be required to hold a digital identity document. The idea was designed to tackle illegal migration but had been deemed a “fiasco” by a cross-party ​committee of MPs.

More attention will be paid to ⁠decisions on taxation and spending, oil and gas, and underperforming utility companies, where Burnham wants stronger public control.

Emerging cabinet

John Healey, the former British defence minister who helped to trigger Starmer’s departure by accusing him of failing ‌to spend enough money on keeping the country safe, has been named finance minister.

The popular Healey, 66, will have to find more money to ‌spend on defence while also investing in other key areas such as health and welfare.

Healey had not been seen as a likely candidate for the key finance role, formally known as the chancellor of the exchequer. But he was a junior minister in the Treasury department from 2002 to 2007.

He served in government under the three ‌most recent Labour prime ‌ministers, starting ⁠with Tony Blair, and in opposition under two more leaders.

Energy secretary and former Labour leader Ed Miliband, who had once been considered a frontrunner to become finance minister, was appointed foreign secretary.

Burnham kept interior minister Shabana Mahmood in her role, meaning ‌she can press on with efforts ​to try to control illegal immigration.

Mahmood said on X the post of Home Secretary was “the best job in the business”

European leaders urge closer EU-UK

European leaders have congratulated Burnham on becoming prime minister, seizing the opportunity to call for closer EU-UK relations.

European Commission president Ursula von der Leyen said she looked forward to working with him for the “prosperity of people on both sides of the Channel”.

“Congratulations, dear Andy Burnham, on your confirmation as Prime Minister,” she said in a post on X on Monday.

“I look forward to working with you to strengthen the EU-UK partnership.

“For the security of our shared continent. And the prosperity of people on both sides of the Channel.”

Echoing von der Leyen’s calls for closer ties, European Council president Antonio Costa said: “In the last two years EU-UK relations gained a new, positive momentum. I look forward to continuing to further deepen our co-operation for the benefit of our citizens and businesses.

“The United Kingdom and the European Union are stronger together.”

Australian Prime Minister Anthony Albanese also congratulated Burnham.

“Australia and the United Kingdom are longstanding friends, allies and partners, united by shared values and deep ties between our peoples,” he posted on X.

“I look forward to working with you to strengthen our partnership and promote security, resilience and prosperity in the years ahead.”

Italian Prime Minister Giorgia Meloni said: “Congratulations and best wishes for a successful tenure to the new prime minister.

“Italy and the United Kingdom are bound by a deep friendship and a collaboration that, over the years, has grown ever stronger, also thanks to our joint work on key dossiers fundamental to our nations: from managing migratory flows to the major international crises, always addressed with a great spirit of collaboration.

“I am certain that we will continue down this path, strengthening our strategic partnership in the interest of our nations and our citizens.”