Andy Burnham will address the House of Commons - and take questions from MPs - for the first time as prime minister this afternoon
The PM will focus on greater public control of services writes Henry Zeffman - but, as Simon Jack reports, that's not the same as nationalisation
Meanwhile, UK borrowing costs have risen again - see the recent climbs here. Downing Street insists "fiscal discipline is the bedrock of economic stability"
While similar borrowing rises have been seen in the US, Japan and Europe, it will come as little comfort to the PM, writes Faisal Islam
Burnham met his cabinet this morning as MPs return to Westminster after the summer recess
After something of a soft launch as prime minister, today is a big moment for Andy Burnham, writes Chris Mason
Elsewhere, the PM's predecessor, Keir Starmer, has announced he is stepping down as an MP - there will now be a by-election in his London constituency
Image source, UK POOLPrime Minister Andy Burnham has just been seen leaving No 10, where he earlier hosted a cabinet meeting.
He's due to make a statement to MPs - his first in Parliament since becoming prime minister.
Image source, House of CommonsNigel Farage has been sworn in as the MP for Clacton following his by-election victory last month.
The Reform UK leader takes the oath, with some laughs and murmurs from MPs in the House of Commons. He then walks over for a brief chat with Speaker Lindsay Hoyle.
As a reminder, Farage resigned as an MP in July after facing intense scrutiny over financial support he has received - triggering a by-election. He won that election with 63.34% of the vote.
Image source, ParliamentSpeaker Lindsay Hoyle addresses Parliament ahead of questions for the Foreign, Commonwealth & Development Office (FCDO)
MPs have taken their seats in the Commons chamber following their return to Parliament after the six-week summer recess.
First up is foreign minister Stephen Doughty, who will be taking questions.
We'll be bringing you coverage later this afternoon as Andy Burnham addresses the Commons and takes questions from MPs for the first time as prime minister.
Andy Burnham became PM on 20 July, when MPs had already left Westminster for the summer recess.
Today will be the first time we see him in Parliament as prime minister, and we've already seen him this morning while out for a run, but here are some of the other places he has been since he entered No 10:
Image source, Jeremy SelwynThis morning the PM was pictured out on a run, ahead of his first appearance in the Commons. It isn't the first time he's been photographed on a jog
Image source, PA MediaBurnham joined Mayor of London Sadiq Khan and Pensions Secretary Pat McFadden at a Sainsbury's supermarket to launch a work experience programme
Image source, PA MediaThe PM visited emergency workers in the West Midlands who had responded to wildfires during the summer's hot weather
Image source, ReutersBurnham visited Kyiv to mark Ukraine's independence day
Image source, PA MediaAt the start of August he went back to his old patch and congratulated Bev Craig on succeeding him as Mayor of Greater Manchester
During their meeting earlier, Andy Burnham thanked his cabinet colleagues for "establishing a strong sense of momentum in his first weeks in office".
No 10 says Burnham told his cabinet that the country had "noticed a change of pace" with the government "setting the agenda" and through "starting the process of giving local areas the levers they need to create good growth".
The PM also said that during his "summer tour" - when he travelled across the country in August - it was "clear that life was hard for many people, that they wanted to have hope and hear a positive outlook for the country".
His spokesman added that the prime minister also thanked Justice Secretary Alex Norris for his work on the early prisoner release scheme, and Home Secretary Shabana Mahmood for her work on small boat crossings.
Image source, PA MediaForeign Secretary Ed Miliband, Minister of State Hamish Falconer, and Environment Secretary Angela Eagle leaving Downing Street after a cabinet meeting earlier
Moving away from the news of Keir Starmer's resignation as an MP. Earlier, we reported the rate of a 10-year loan to the British government reached its highest level since 2008.
The prime minister's official spokesman says fiscal discipline is the "bedrock" of the economy’s stability - after the government's long-term borrowing costs soared.
He adds: "We don’t comment on markets. More generally, I would just say that fiscal discipline is the bedrock of economic stability and national security.
"The chancellor and the prime minister are in lockstep that the government will meet the fiscal rules with a buffer against uncertainty and we’re cutting the deficit faster than any other G7 economy to the lowest level in six years."
He would not say what size buffer the prime minister was looking to secure.
Watch: PM's emotional tribute to his wife and children
When Keir Starmer announced he would stepping down as prime minister in June, he said he wanted to spend more time on "the most important job" of being with his family.
"Being the best husband I can, to my fantastic wife Vic, who has been a rock by my side through good times and bad," he told crowds in an emotional end to his resignation speech.
"And being the best dad I can to my beautiful children, who are my pride and joy."
We can now bring you Keir Starmer's full statement on his resignation as an MP:
"Over the summer, I have had time to reflect and consider my future. I have decided that now is the right time to step down as MP for Holborn and St Pancras and hand the baton over to a successor.
"It's been an honour and privilege to represent the best constituency in the country since taking over from the great Frank Dobson 11 years ago.
"But it is now time to step aside and focus on other issues: international affairs including defence, security, trade and technology in a fast changing world.
"I will also continue working with others as I have done over many decades to tackle violence against women and girls. As I do that, I will always remain immensely proud to have represented the place Vic, the kids and I call home.
"I look back with pride on what my constituency team and I have delivered in Holborn and St Pancras since 2015 and I thank all those who I was privileged to work with on so many issues of local concern: affordable housing projects, delivering first class education and tackling youth violence through our Camden Youth Safety Taskforce.
"I want to thank my CLP team who have always stood firmly by me, and given me the support I needed as I stood for Leader of the Labour Party and then as I took my Party from political, moral and financial ruin to an historic landslide election win in 2024 and two years as Prime Minister when we stabilised the economy, rebuilt our public services, invested record amounts in our defence and security, began lifting hundreds of thousands of children out of poverty and transformed Britain's reputation with international partners.
"I want to thank my constituency staff who, throughout all those 11 years, have worked tirelessly on casework and helped me do my utmost to serve the people of Holborn and St Pancras. I could not have done this job without them.
"There will now be a process to appoint my successor ahead of a by-election. Whoever is lucky enough to become the Labour candidate here will have my full support and backing and I will continue to give my full support to the Prime Minister and this Labour government."
As we've just reported, Keir Starmer says he will step down as an MP for Holborn and St Pancras.
Starmer resigned as prime minister earlier in the summer, with Andy Burnham replacing him.
At the time it was thought Starmer would be staying on as the MP for the north London constituency, although he now appears to have changed his position.
Former Prime Minister Keir Starmer will stand down as an MP, he has told his local paper.
Starmer has been MP for Holborn and St Pancras in central London since 2015.
Speaking to the Camden New Journal, he says standing down will allow him to "focus on other things" such as international affairs, defence, and security.
He also tells the paper it was time to "pass the baton to a successor".
Image source, Reuters
Andy Burnham's statement to Parliament comes as the rate for a 10-year loan to the British government - a 10-year gilt - rose to 5.23% this morning.
The last time it was that high was in 2008 during the global financial crisis.
Kathleen Brooks, research director at investment company XTB, tells the BBC News Channel: "Of course, this is red lights flashing."
"We are used to pockets of volatility, it has been volatile few months," she says.
But record levels of government debt and a record tax take mean "these are not comfortable times for the new government and the new chancellor," she says.
Every time bond yields rise, the UK has to pay more on the debt interest, she says.
Faisal Islam
Economics editor
As Andy Burnham prepares to take questions from MPs, borrowing costs for governments across the globe continues to rise, with new multi-decade highs in market interest rates.
The rate for a 10-year loan to the British government - a 10-year gilt - rose to 5.23%, the highest since 2008.
While similar highs have been reached in recent days in the US, Japan and elsewhere in Europe, this will come as little comfort to Burnham.
Global markets reacted in particular after suggestions in the US that its central bank could raise rates. The UK market was closed for the bank holiday yesterday. Japan is also facing pressure to raise rates.
Chancellor John Healey has been in the US attending a meeting of global finance ministers and central bankers. He told the G20 that the UK had the fastest growth in the G7 in 2026 so far, that productivity was improving and that the UK was cutting its borrowing at the fastest rate of the major economies.
The moves in markets, a reflection of concerns about inflation arising from the ongoing Iran war, competition from major tech firms for long-term borrowing, and concerns about state borrowing levels, will make the Budget process yet trickier.
At its last forecast in March the OBR, the official forecaster, assumed the same 10-year borrowing rate would be 4.5%.
Sima Kotecha
Senior UK correspondent
As we reported earlier, unused office space, laundry rooms and storage areas will be converted into cells, as ministers look to free up more prison space:
There is frustration among some prison staff about the government’s plan to convert unused space such as laundry rooms into cells to deal with overcrowding.
One prison staffer tells me: “Are they on another planet? We don’t have lots of free space. Surely they need to spend that money on repairing the thousands of cells that we can’t use because they have safety issues?”
A 2024 National Audit Office report concluded that a quarter of prison places - around 23,000 - do not meet fire safety standards.
Image source, Getty ImagesThe cabinet meeting in No 10 appears to have finished now.
Ministers have been seen leaving through the front door, following the meeting on the first day of the new parliamentary term.
Image source, PACulture Secretary Lisa Nandy and Home Secretary Shabana Mahmood
Image source, PA MediaEnvironment Secretary Dame Angela Eagle, minister of state Hamish Falconer and Foreign Secretary Ed Miliband
Image source, PA MediaDefence Secretary Wes Streeting
Simon Jack
Business editor
Image source, PA MediaAndy Burnham - when he was mayor of Greater Manchester - visits the manufacturer of Bee Buses in June 2023 ahead of his overhaul of the network
When he speaks in Parliament later, Prime Minister Andy Burnham is expected to say that establishing greater public control of essential services is one of his priorities.
The first thing to say is that it doesn't necessarily mean public ownership and may mean different things for different industries.
The exemplar often looked to is the Manchester bus network. In that instance Transport for Greater Manchester (TfGM) did not take over the running of the bus network themselves.
TGM set timetables and fares. It then invited private operators to bid for the contract to run them - but for a set fee, so they couldn't take all the profit.
The situation is different with rail as the government plans to continue its programme of returning rail franchises to public ownership as their contracts expire.
The obvious and urgent problem is Thames Water - which many people were expecting he might at least temporarily nationalise and put in a special administration.
But government privately acknowledges that that would be a complicated and potentially expensive legal and financial process.
Full nationalisation of a business is usually the last resort. British Steel was taken into public ownership during the Starmer government to the great displeasure of its Chinese owners, and came at a significant cost.
Andy Burnham appointed his cabinet immediately when he became PM in July.
Here's a reminder of who he has put in the top jobs:
There are also a handful of other ministers who attend cabinet, but aren't considered cabinet ministers.
Kevin Peachey
Cost of living correspondent
In the last cabinet meeting – which feels like, and was, some time ago – the PM said he would lead a “cost of living government”.
During his summer tour, Andy Burnham’s new policies focused on small changes that made a little bit of difference to living costs.
But last week also brought news of rising household energy prices to a three-year high and forecasts of a further 9% increase at the height of winter.
So, amid talk of structural changes like the public control of services, voters may want to hear that the government is willing to offer more financial support when it comes to paying the bills, even though the constraints on the public finances remain.
Image source, PA Media
Image source, Jeff Overs/BBCWe don't know exactly what Andy Burnham will say when he addresses MPs later today, but here's a look back at what he said when he entered No 10:
Burnham vowed to create a new political and economic model during his first speech as prime minister on Downing Street on 20 July.
Following Keir Starmer's resignation, the new PM promised a more collaborative form of politics that prioritised problem solving instead "point scoring", and signalled a 10-year plan for the country to be laid out later this year.
He said his first instruction upon entering No 10 would be to end rough sleeping, foreshadowed a series of costed announcements on cost of living, promised to get more young people into work and offer mental health support.
"And we will build more council homes," he said, adding those initiatives were a fair and reasonable way to lower the welfare bill, help the government meet its own fiscal rules and commitments to defence spending.
"Let’s build a new national sense of unity, of common purpose and positivity," he said.
Defence Secretary Wes Streeting, Energy Secretary Miatta Fahnbulleh and Education Secretary Lucy Powell have also been pictured arriving for this morning's cabinet meeting.
Image source, PA MediaDefence Secretary Wes Streeting is seen arriving at Downing Street - he was previously Health Secretary under Keir Starmer
Image source, PA MediaEducation Secretary Lucy Powell - who under the previous government served as Lord President of the Council and Leader of the House of Commons
Image source, PA MediaEnergy Secretary Miatta Fahnbulleh was a housing minister under Keir Starmer
Chris Mason
Political editor
This will be quite a moment for the prime minister.
It's been something of a soft launch for Andy Burnham. Just by a coincidence of the calendar he became prime minster at just the point that Parliament vanished into its lengthy summer recess.
He will be in the Commons perhaps for a couple of hours, and it will likely be quite a broad conversation because there’s been this peppering of relatively small but eye-catching policy ideas over the summer.
And it also will be the first time we get a sense of the tone he wants to strike.
The emphasis again and again from his team has been wanting to be positive and upbeat. In other words, he's learning the lessons from Keir Starmer who was tonally the opposite.
Image source, PA Media