Increased defence spending will boost UK economic growth, Streeting says

New Defence Secretary Wes Streeting stated that increased defence spending will significantly contribute to UK economic growth, emphasizing that the military will be a priority for Andy Burnham's government over other departments. Speaking at the Farnborough airshow, Streeting did not announce new financial commitments but pledged to provide the arms industry with "clarity and confidence." Prime Minister Andy Burnham has committed to increasing defence spending from 2.6% to the Nato target of 3.5% of GDP by 2035, a move intended to reindustrialize the UK. This policy shift, supported by the appointment of John Healey as Chancellor, signals a rebalancing of the economy towards defence, diverging from traditional Labour spending priorities. Streeting also reiterated his view that Israel has "fallen short" in its conduct during the war in Gaza and its operations in the West Bank.

Prime Minister Andy Burnham has announced that single bus fares across England will be capped at £2 starting in January. This measure, which will cost over £500 million, aims to alleviate the cost of living for millions of people and will also allow devolved nations to implement similar caps. The funding for the bus fare cap will come from reallocated international climate finance, savings from the Department for Energy Security and Net Zero, and existing Department for Transport bus funding. This initiative reverses a previous increase and aims to make transport more affordable, with the government stating the scheme is fully funded through spending reprioritization.

New UK Prime Minister Andy Burnham faces significant challenges in revitalizing Britain's slow-growing economy. He must balance the demands of voters seeking relief from the cost of living with investor pressure to reduce the ballooning national debt. In his first 24 hours, Burnham appointed John Healey as Treasury chief, signaling a commitment to fiscal responsibility. He also announced a six-month suspension of the home electricity tax, funded by canceling digital ID plans, to reassure investors. Burnham's administration aims to reindustrialize the economy, boost public housing construction, and support small businesses, while adhering to promises not to raise taxes on working people and to maintain the state pension's "triple lock." However, he also faces the new challenge of increasing defense spending.

Andy Burnham has appointed Ed Miliband as Foreign Secretary and Wes Streeting as Defence Secretary in his new UK cabinet. Miliband, a former Labour leader, previously opposed military strikes on Syria in 2013 and has expressed hostility towards Donald Trump. He also championed the UK's net zero emissions target, a policy opposed by some within the new government due to cost-of-living concerns. Streeting, a newcomer to defence, has a background in education and served as Shadow Health Secretary. His views on Israel have reportedly shifted. Both appointments come as Prime Minister Burnham aims to bring stability to the UK government.

UK inflation decreased to 2.6% in June, exceeding economists' expectations. This drop was influenced by falling prices for fuel, particularly diesel, as well as reductions in clothing, transport, and food costs. The new prime minister has implemented measures to lower the cost of living, including a winter VAT cut on electricity bills and a cap on bus fares in England. While this news is seen as a positive development for the government's economic agenda, inflation remains above the Bank of England's 2% target. Concerns persist about potential future inflation increases due to geopolitical tensions and rising energy prices, though some analysts believe the Bank of England may hold interest rates steady.

New British Prime Minister Andy Burnham, while not overtly pro-European in his rhetoric, is expected to bring the UK closer to the EU through his domestic agenda. European leaders have welcomed Burnham, hoping for continued positive relations. Burnham's focus on industrialization, regionalism, and economic sovereignty, particularly in areas like AI and energy, mirrors the EU's own "strategic autonomy" drive. This approach, prioritizing domestic growth and "sovereign capabilities," could lead to pragmatic cooperation with the EU on issues such as tech policy and critical minerals. While not proposing EU rejoining, Burnham acknowledges Brexit's economic damage and his agenda may lead to closer alignment with Brussels through project-based re-engagement and stronger support for joint assemblies, rather than solely relying on leaders' summits.

Prime Minister Andy Burnham has urged his new cabinet to explore all avenues to address the cost of living crisis, declaring his administration a "cost of living government." On his first full day in office, he announced the removal of VAT from electricity bills, costing £850 million next year, funded by scrapping the digital ID scheme. However, questions have arisen about the funding for this and other pledges, including increased defense spending and a reduction in the national bus fare cap. Chancellor John Healey is reportedly developing longer-term cost-saving plans for a future budget. Burnham also intends to accelerate plans for a national care service, though potential funding models are expected to face political challenges.

Newly appointed UK Prime Minister Andy Burnham has announced a cut to domestic electricity bills by removing VAT from October 1st. This measure aims to alleviate the cost-of-living crisis and is funded by scrapping the digital ID scheme. Burnham, who replaced Keir Starmer, also sacked several Starmer loyalists from his cabinet, appointing allies to key positions, including John Healey as Chancellor. In his first day, Burnham spoke with US President Donald Trump about various topics, including trade and military alliances. Ed Miliband was appointed Foreign Secretary, a controversial choice given his past energy policies and Trump's criticism of them. Burnham pledged continued support for Ukraine.

The UK government borrowed £16 billion in June, less than economists predicted and £7.9 billion less than in June 2025, according to the Office for National Statistics. This figure, partly due to lower debt interest costs, provides a boost as Prime Minister Andy Burnham announced plans to cut VAT on household electricity bills from October. Chancellor John Healey stated this cut would be funded by cancelling the digital ID program this year. Burnham and Healey aim to adhere to Labour's fiscal rules while addressing the cost of living. Despite the positive borrowing figure, the UK's debt burden continues to rise, presenting potential trade-offs for the government.

British Prime Minister Andy Burnham announced his first policy initiative, a cut to electricity bills, aiming to address the cost-of-living crisis. Starting October 1st, his government will remove value-added tax from domestic electricity bills, which is expected to save households approximately £45 annually on an average bill of £1,862. This measure is intended to signal his commitment to bringing change and easing public anger. The funding for this tax cut will come from savings generated by the cancellation of a £1.8 billion digital ID program. Burnham made this announcement on his second day in office, with bond investors monitoring the fiscal implications of such support.

Andy Burnham has announced a cut to VAT on electricity bills as his first cost-of-living initiative. This measure is anticipated to save households approximately £45 annually. However, a former minister has raised concerns, labeling the plan as "unfunded." Separately, António Costa, President of the European Council, reported a phone call with Andy Burnham where they discussed strengthening EU-UK relations and cooperation in supporting Ukraine. Their conversation also touched upon common geopolitical challenges facing Europe, which Costa indicated could encompass various issues including soaring energy prices, Europe's relationship with Washington, the future of NATO, hybrid warfare, and rising national populism.

British Prime Minister Andy Burnham has appointed Ed Miliband as the new foreign secretary, a move that has drawn criticism from allies of U.S. President Donald Trump. Miliband has a history of strongly criticizing Trump and supports net-zero energy policies, which conflict with Trump's push for increased fossil fuel production. Trump allies, including Steve Bannon, have warned that this appointment could strain U.S.-U.K. relations. Miliband, a former Labour Party leader, previously described Trump as a "racist, misogynistic, self-confessed groper." Despite these concerns, Miliband stated his intention to work with all partners and nurture the alliance with the United States.

Andy Burnham has become the UK's new prime minister, vowing to "bring back hope" and acknowledging the public's dissatisfaction with politics. He appointed John Healey as chancellor and promised immediate cost-of-living relief, including plans to cut energy bills and bus fares. Burnham indicated a willingness to explore borrowing for infrastructure investment but stressed a prudent economic approach. He also pledged to repair damage caused by the Thatcher era and implement significant changes to the UK's political and economic models. Key cabinet appointments include Ed Miliband as foreign secretary and Louise Haigh as first secretary of state.

Andy Burnham became the new British Prime Minister on Monday, succeeding Keir Starmer. He was formally invited to form a government by King Charles III. Burnham pledged to implement a "new political model" and a "new economic model," aiming to decentralize power from London and put essential services under stronger public control. He announced plans for a 10-year plan for Britain, focusing on re-industrialization, support for young people, and building council homes, with an immediate priority to end rough sleeping. Burnham also acknowledged the public's frustration with politics and the need for greater stability. His agenda signals a departure from Thatcher-era policies, and he faces potential friction with Washington due to his past criticisms of Donald Trump.

Andy Burnham has officially become the United Kingdom's seventh Prime Minister in a decade, following his confirmation at Buckingham Palace. He pledged to end the political instability that has characterized recent years and promised significant changes to counter the rise of populist forces. Burnham, formerly the mayor of Greater Manchester, replaces Keir Starmer, who was ousted by his peers. In his first address from 10 Downing Street, Burnham declared his intention to implement the biggest changes in 40 years, introducing new political and economic models. He also stated that measures to address the cost of living crisis would be announced this week, aiming to provide relief to Britons.

In his first address as prime minister, Andy Burnham pledged to end rough sleeping in England. He announced an additional £340 million over three years to fund this initiative, aiming to replicate successful homelessness schemes implemented in Greater Manchester. This funding, sourced from unused housing department budgets, will support the creation of 1,200 new homes and assist 3,000 individuals over five years. While homelessness campaigners welcomed the pledge, critics expressed skepticism, citing rising street homelessness in Greater Manchester during Burnham's tenure as mayor. Burnham stated his government would immediately work to bring together national and local efforts with the necessary investment.

Andy Burnham, widely expected to become the UK's next Prime Minister, has apologized for the Labour Party's past stance on the conflict in Gaza. Speaking in a social media video, Burnham stated the party "didn't get it right" and needs to improve its approach. He acknowledged the "unbearable suffering" in Gaza and pledged to increase pressure on the Israeli government, while reiterating condemnation of Hamas attacks and antisemitism. Burnham criticized the Israeli government's actions, including settlement expansion, and expressed commitment to keeping the prospect of a two-state solution alive. This comes amid growing public pressure in the UK, with polls indicating a significant portion of the British public believes Israel is committing genocide in Gaza, and a notable shift of Labour voters to other parties over the issue.

Andy Burnham, a likely candidate for Prime Minister, has publicly apologized on social media for the Labour Party's initial position regarding Israeli attacks in Gaza. Burnham stated his intention to work towards "stopping the suffering" in the region. The article does not specify when this apology was made or provide further details on the Labour Party's initial stance. The focus of Burnham's statement is on addressing the humanitarian crisis in Gaza.