Andy Burnham is set to become Britain’s prime minister on Monday after being overwhelmingly backed as the leader of the [Labour](en.wikipedia.org](en.wikipedia.org))) Party. Burnham, the former mayor of Greater Manchester, was elected as the new leader following the resignation of Keir Starmer last month.

Burnham will face a roster of challenges as he steps into the office. The priority will be boosting the economy and improving living standards for voters who have despaired over soaring energy and food prices since the start of the Russia-Ukraine war. He has championed devolving power to regional hubs as a lever for growth. "It’s not just about driving local growth, it’s about turning these places around so they drive national growth," explained Philip McCann from the research organization Productivity Institute.

Burnham has said he will support smaller businesses, “reindustrialisation,” and greater public control over water, transport, and energy. The Financial Times reported he could ease restrictions on oil and gas drilling in the North Sea to reduce energy bills. His pick for finance minister, still unannounced, may well determine how left-wing or centrist his economic agenda is.

Another headache will be tackling ballooning welfare costs, which Burnham has acknowledged need to be reduced. Starmer faced backlash from the public and his party over reforms to the benefits system, including cutting winter fuel payments for the elderly. Burnham, from the so-called soft left of Labour, will face pressure to resist slashing benefits. He has also pledged to “fix” underfunded sectors like social care, which he attempted to overhaul as health secretary in 2009. On Friday, Burnham, whose father has Alzheimer’s, said he was “prepared to grasp the nettle” to make changes, adding, “the system’s broken.”

Burnham will need to fill a £4.7 billion ($6.3 billion) gap over four years in the country’s defense investment plan. The long-delayed plan was published by Starmer last month, but the task of delivering it will fall on Burnham.

In a speech on Friday, Burnham said he wanted to “take us to a country where life is more affordable.” He has championed devolving power to regional hubs as a lever for growth. Burnham has also pledged to introduce a year-long rent freeze for the private sector, a reduced cap on bus fares, and removing green levies from energy bills and funding them through tax instead.

Burnham's team is considering funding his commitments by taxing wealth, but he seemed to signal earlier this week that this would not be something he would pursue in the immediate term. Downing Street and Treasury officials suggest that the incoming prime minister funds the defense investment gap through increasing borrowing, given there is still headroom against the government’s debt targets.

Burnham will also have to decide on the future of Thames Water, whose creditors are trying to negotiate a £10 billion rescue package. Emma Reynolds, the environment secretary under Starmer, recently wrote to regulators spelling out her opposition to such a deal, saying it would represent poor value for taxpayers.

Burnham's rise to power comes after Keir Starmer's popularity waned due to a series of controversies and a lack of clear vision. Starmer's government faced backlash over reforms to the benefits system and the appointment of Peter Mandelson as the UK's ambassador to the US, given Mandelson's ties to Jeffrey Epstein.

Burnham's election as Labour leader was facilitated by a by-election in the Makerfield constituency, which allowed him to enter Parliament. He had been the mayor of Greater Manchester and was seen as a strong candidate to replace Starmer.

Burnham has promised to steer Labour in a distinctively left-wing direction, promising to unite the movement and devolve power from Westminster to local communities. He has also pledged to build the largest program of social housing since the post-war era and to create "good growth in every postcode area."

Burnham's plans for devolution include moving part of the government's headquarters from London to a new "Number 10 North" in Manchester. He has also founded the "Bee Network," a local bus and tram network regulated by a municipal transport authority, which has been praised for better connections and higher punctuality, although it is highly subsidized.

In his speech at the People’s History Museum in Manchester, Burnham outlined his vision for a "power redistribution" and a "socialism that is pro-business." He has also called for public control over essential services such as transport, water, and energy.

Burnham's appointment as prime minister will be confirmed on Monday when he meets with King Charles to form a new government. His immediate tasks will include addressing the cost-of-living crisis, funding defense, and deciding on the future of Thames Water.

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