Andy Burnham to become UK prime minister as markets assess policy direction
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Andy Burnham is set to be appointed UK prime minister on Monday, prompting investors to weigh his fiscal and economic plans, while US President Donald Trump praised his North Sea oil agenda.
Andy Burnham will be asked by King Charles to form a government at Buckingham Palace on Monday, marking his ascent to the role of the United Kingdom's seventh prime minister in ten years. Burnham, who returned to Parliament after winning a by-election in Makerfield and previously served as Mayor of Greater Manchester, succeeded Keir Starmer as leader of the Labour Party without opposition.
In his recent speech, Burnham pledged to address social care and reverse what he described as decades of centralized political power and privatized economic control. He affirmed his commitment to Labour's manifesto, including a pledge not to raise income tax, while hinting at possible reforms to inheritance tax, council tax and greater public control of utilities such as energy, transport and water.
Market analysts noted that bond investors, who had favored Starmer and finance minister Rachel Reeves for their fiscal restraint, are now monitoring how Burnham will manage public borrowing. Andrew Wishart, senior UK economist at Berenberg, said the market appears "fairly relaxed" about Burnham's agenda but warned that higher spending could unsettle investors if funded by additional gilt issuance.
U.S. President Donald Trump used his Truth Social platform to praise Burnham's plan to accelerate oil and gas exploration in the North Sea, calling the resource "invaluable" and suggesting it could transform the UK from a "poverty-stricken disaster" into a wealthy nation.
Analysts such as Rachel Vahey of AJ Bell noted that while many details of Burnham's policy agenda remain unclear, speculation about an expanded autumn budget and potential tax reforms could have significant financial implications.