The new prime minister pledged to make announcements this week to "give people some breathing space".

Andy Burnham pledged to "bring back hope" to Britain, as he began his tenure as prime minister by appointing Labour stalwart John Healey as chancellor. In his first speech to the nation in Downing Street, Burnham said he wanted to bring forward the "biggest changes in the last 40 years" to British politics. He outlined his intention to unveil a 10-year "new plan for Britain" later this year, explaining this would lay out a path to where he believes "we all want Britain to be". Burnham promised to make announcements this week to "give people some breathing space now, some help with the cost of living" and explain how he would pay for them. Burnham also started making cabinet appointments after removing loyalists of former PM Sir Keir Starmer. Out went Rachel Reeves as chancellor, David Lammy as deputy prime minister and justice secretary, and Steve Reed as communities secretary. Healey, who quit Sir Keir's government due to a row over defence spending, was in as chancellor. With Burnham saying he wants to honour the UK's commitments on defence spending, Healey will face the challenge of finding the extra money he believed the last government failed to deliver to keep the UK safe. Speaking to broadcasters, Healey said the pair will "work in lockstep to meet the fiscal rules with a buffer against uncertainty" and on how they will "make life more affordable for working people right across the UK".