Burnham begins! New PM is ‘crowned’ by the King after Starmer bows out… and must now appoint Cabinet without sparking Labour civil war

Andy Burnham was officially appointed Prime Minister by the King today, following the resignation of Keir Starmer.

The Labor leader has been invited to form a government at Buckingham Palace this afternoon. He will now return to Downing Street, where a crowd of aides and supporters have gathered to hear his first address to his country.

But the former Mayor of Manchester faces a pivotal moment as he names his cabinet this afternoon.

The Labor left are still clamoring for Ed Miliband to become Chancellor, despite the alarm of business and moderates. Markets have calmed down following speculation that Shabana Mahmood will take the role instead, but any surprises could trigger a panic reaction.

Meanwhile, the fates of great monsters such as Angela Rayner, Wes Streeting and Yvette Cooper will also be determined.

The resignations began when prisons minister Lord Timpson announced he would go with Sir Keir.

Unusually, Mr Burnham was accompanied to meet the King by his wife, Marie-France van Heel. In a statement, Buckingham Palace said: ‘Her Majesty welcomed the Rt Hon Andrew Burnham MP into the audience and asked him to form a new Administration.

‘The Rt Hon Andrew Burnham MP accepted the King’s offer and kissed hands on his appointment as Prime Minister and First Lord of the Treasury.

‘Miss Marie-France van Heel was also received by Her Majesty.’

The constitutional change came after Sir Keir insisted on using a farewell address outside No 10. Although it only survived for two years after a major election victory, it was no failure.

Sir Keir said he had ‘closed the book on my time’, saying ‘my work is done’ and the country is ‘stronger’. He insisted Mr Burnham, who staged a coup to secure the leadership, would have ‘full support’.

Thanking his wife Victoria and family, he said: ‘I leave with good graces, I leave with a smile and I am proud of everything we have achieved.’

Close Cabinet allies including David Lammy and Rachel Reeves had gathered in sunny Downing Street along with hundreds of aides to watch Sir Keir say his farewells. Mayor of London Sadiq Khan was also there during the emotional moments.

On another important day in British politics:

• Mr Burnham revealed his father, who has Alzheimer’s disease, did not know he would become Prime Minister when he promised to overhaul social care;
• Eco-businessman Dale Vince has been spotted in Downing Street amid confusion over whether the Government will allow further drilling in the North Sea;
• The new Prime Minister has signaled that the freeze on the basic tax threshold will end sooner, without saying how it will be financed;
• Mr Burnham will be the first openly Catholic Prime Minister in nearly 500 years, with workarounds put in place to protect the Church of England;
• Loudspeakers were banned near Downing Street today after protesters defaced Sir Keir’s speech announcing his resignation.

Unusually, Mr Burnham was accompanied to meet the King by his wife Marie-France van Heel (pictured arriving at Buckingham Palace)

Keir Starmer gives his farewell speech outside the famous black door of No10, just two years after a spectacular election victory

After his speech, Sir Keir and Lady Victoria got into the car to be taken to Buckingham Palace.

In his farewell speech, Sir Keir said: ‘I am about to visit His Majesty the King to tender my resignation and close the book on my tenure as Prime Minister.

‘I’m done. In six and a half years, I saved our party from the historic defeat in 2019, prepared it to face the country, and won a landslide general election victory in 2024.

‘Since then, it has been the privilege of my life to serve you and this great country as Prime Minister, and I am confident that Britain is stronger and fairer than it was two years ago.

‘Our economy is stronger. Our public services are improving, with the biggest drop in waiting times in 17 years. Children are being lifted out of poverty every day.

‘Immigration has decreased significantly. Our defense and security are on a much stronger foundation and our international reputation is greatly enhanced.’

The handover comes barely a month after Mr Burnham returned to Westminster following his victory in the Makerfield by-election.

He was installed in a ‘coronation’ by Labor MPs, without a formal vote from activists or the need for any policy statements.

Devolution of power is among the vague commitments made by the incoming Prime Minister so far. Far from Westminster.

He announced he would cancel Sir Keir’s flagship digital identity program to focus money and attention on the cost of living.

In an interview with The Times, Mr Burnham said he had already spoken to the Treasury about his planned announcements and stressed the importance of making people ‘feel better’.

Adding that complaints about freezing tax thresholds had ‘settled in his mind’ since the Makerfield contest, Trump said: ‘So when people describe me as just a tax collector, I say again, it’s never that simple, is it? The breathing space point is a really serious point.’

The comments raise further questions about how he will pay for the gifts, after Mr Burnham recalled the 1970s when he backed a ‘land tax’ and condemned Thatcherite reforms.

But the weekend was filled with clumsy briefings on whether the new Government will allow new oil and gas drilling in the North Sea.

The leader’s team has now confirmed Labor will stick to its 2024 manifesto, which pledges to no new licences.

It could instead allow expansion of drilling at the Rosebank and Jackdaw fields, which was also being considered by Sir Keir’s administration.

This could bode ill for Mr Burnham’s relations with Donald Trump, who yesterday enthusiastically hailed more drilling as a way to stop Britain becoming a ‘poverty-ridden disaster’.

Mr Burnham also faces the decision of whether to temporarily nationalize Thames Water as the company grapples with a £20bn debt pile.

He has already expressed support for greater public control of essential services and Thames Water’s main creditors have said they are willing to discuss the issue with their new minister in a bid to agree a rescue deal and prevent the business from falling into a so-called ‘private management regime’.

Another priority will likely be reforming social care, which he said is something he wants to ‘spend political capital on’.

The Labor left is still clamoring for Ed Miliband to become Chancellor, despite alarm from business and moderates

The fates of big monsters like Angela Rayner, photographed with Mr Burnham on the campaign trail, will be decided

Keir Starmer’s resignation was accepted by the King at the meeting held at Buckingham Palace today.

Close Cabinet allies including David Lammy and Rachel Reeves had gathered in sunny Downing Street along with hundreds of aides to watch Sir Keir say his farewells.

After the speech, Chancellor Rachel Reeves, who was expected to lose her job, was welcomed with open arms.

Sir Keir gave his wife a kiss as he left Downing Street for the last time today

Kemi Badenoch warns Mr Burnham he should cut spending rather than raise taxes

Liberal Democrat leader Sir Ed Davey called on Mr Burnham to engage other parties to tackle the ‘social care crisis’, calling for guaranteed rights for family carers, a universal safety net and protection against ‘catastrophic costs’.

Kemi Badenoch also wrote to Mr Burnham, saying her party would work with him to cut the welfare bill and urging him to ignore tax increases and support new oil and gas drilling.

Ms Badenoch told Mr Burnham she would ‘never shy away’ from holding him to account, adding: ‘You will come into office without having prepared a clear plan for any of the issues facing our country.

‘You rejected calls from MPs to come to Parliament to ask questions and did not submit yourself to serious media scrutiny. ‘This is not a promising start.’