Andy Burnham says his government will show how it's "going to pay" for policies during his first cabinet meeting as prime minister
He also tells his ministers they must be "prepared to make difficult decisions" and form part of a "cost of living government" - a look at Burnham's first full day as PM
Earlier, Burnham said he would scrap VAT on household electricity bills in October, saving a typical household about £45 a year - here's what that could mean for you
Downing Street insists the plan is "fully funded" by scrapping Keir Starmer's planned digital ID scheme, after ex-minister Darren Jones said the ID scheme was itself "unfunded"
The Tories welcome the cut to energy costs, but question how it will be funded; the Lib Dems say the move doesn't go far enough; the Greens call for a "robust energy cap"
Meanwhile Burnham's "No 10 North" in Manchester will come at no extra cost to taxpayers, his spokesperson says
As Andy Burnham stepped onto Downing Street, a large crowd of supporters erupted into applause and there's a big smile on the new PM's face.
He'll be delivering his first speech as prime minister shortly - watch live above.
Image source, Reuters
Nick Eardley
Political correspondent, at Downing Street
One of the first jobs of the new PM will be to announce his cabinet.
I’ve been messaging contacts in government and lots of people are in the dark about whether they’ll still be in their jobs in a few hours.
As one puts it, Team Burnham have kept things "very tight".
Andy Burnham has left Buckingham Palace and is now on his way to Downing Street.
Once there he will deliver his first speech as prime minister.
You can follow all of the action by clicking watch live above.
Image source, PA Media
Faisal Islam
Economics editor, at Downing Street
As Andy Burnham officially accepts the invitation by the King to form the new government, his supporters have arrived on Downing Street ready for his first speech as PM.
It will be interesting to see how much overlap there will be with the outgoing team, if any.
I’ve just seen his chief of staff in Greater Manchester, Kevin Lee.
Chris Mason
Political editor, at Downing Street
Not using a traditional lectern is part of Burnham's desire to project the communication style we became used to during his time as Mayor of Greater Manchester.
That is the visual clue he is trying to give.
Nick Eardley
Political correspondent, at Downing Street
It looks like the lectern era is over.
There’s been a lot of talk about Andy Burnham not having one - a microphone has just appeared on Downing Street for his speech.
Sean Coughlan
Royal correspondent, at Buckingham Palace
Earlier, Andy Burnham swept through the Buckingham Palace gates in a three-car convoy.
With police outriders clearing the way ahead of him, he won't have to worry about red traffic lights for a while.
Burnham's convoy went in through the big front gates of the Palace.
When those ornate gates were first built in 1905 most people in the UK didn't have a vote, including women.
Image source, PA MediaWe can now you bring you the full statement from Buckingham Palace confirming Andy Burnham as prime minister.
"His Majesty received in audience the Rt Hon Andrew Burnham MP and requested him to form a new Administration. The Rt Hon Andrew Burnham MP accepted The King’s offer and kissed hands upon his appointment as Prime Minister and First Lord of the Treasury."
"Ms Marie-France van Heel was also received by His Majesty," the statement adds.
Andy Burnham is officially the UK’s 59th prime minister.
He's just been invited by King Charles to form a government in a private meeting at Buckingham Palace.
Henry Zeffman
Chief political correspondent, at Downing Street
Back on Downing Street, a group of dozens of Labour officials are gathering.
Among them are party figures likely to have advisory roles in the new government.
It may be that they are preparing to line the street to welcome Andy Burnham once he leaves the Palace.
Image source, PA
Image source, PA MediaAndy Burnham has just arrived at Buckingham Palace where King Charles will instruct him to form a government - making him the new PM.
His arrival comes shortly after Keir Starmer, who has now formally resigned as prime minister, left the Palace.
Keir Starmer has left Buckingham Palace after stepping down as PM.
As is tradition, he exited privately along with his wife Lady Victoria.
Andy Burnham's arrival at the Palace is the next part of this political choreography we're expecting to see - watch live above.
Kate Whannel
Politics reporter
Image source, ReutersFormer prime ministers of the United Kingdom at the Remembrance Sunday ceremony in 2024
Keir Starmer’s resignation means there are now nine living former prime ministers - a record number.
The ex-PMs - John Major, Tony Blair, Gordon Brown, David Cameron, Theresa May, Boris Johnson, Liz Truss, Rishi Sunak and Keir Starmer - are all likely to appear together on Remembrance Sunday for the ceremony at the Cenotaph in Whitehall.
At 83, Major is the oldest, while the 46-year-old Sunak is the youngest.
Sean Coughlan
Royal correspondent, at Buckingham Palace
This is how power changes hands between leaders in the UK's constitutional system, with a handshake between the King, as head of state, and the departing and arriving Prime Ministers.
The audiences are being held in the Chinese Dining Room.
And if you're wondering about the name, it's a reference to some of the furnishings, which were once in Brighton Pavilion, which was filled with Oriental-style objects.
Queen Victoria sold off Brighton Pavilion to the local corporation in 1850, but kept some of the furniture and used the money to build the east wing of Buckingham Palace, which is the façade with the famous balcony.
Image source, PA MediaStarmer and the King met in the Chinese Dining Room this morning
Keir Starmer has formally resigned. The role of prime minister is now vacant - but not for long.
We're expecting to see incoming PM Andy Burnham arrive at Buckingham Palace very shortly.
You can watch live at the top of this page.
Image source, PA MediaWe've just seen images of Keir Starmer and King Charles shaking hands inside the Palace's Chinese Dining Room - where Starmer resigned as prime minister moments ago.
As we've just reported, Keir Starmer has officially resigned.
In a statement, Buckingham Palace says: "Sir Keir Starmer MP had an audience of the King this morning and tendered his resignation as Prime Minister and First Lord of the Treasury which His Majesty was graciously pleased to accept.
"Lady Starmer was also received by The King."
After a meeting with the King, Keir Starmer has officially stepped down as prime minister.
We'll bring you more on the statement from Buckingham Palace shortly.
Sean Coughlan
Royal correspondent, at Buckingham Palace
When the outgoing and incoming prime ministers arrive at Buckingham Palace they'll go inside via the "luggage door", a side-door in the quadrangle, as the grand entrance is being used for the Palace's summer tours.
They'll be met by the King's private secretary Sir Clive Alderton and the King's equerry Major Ben Rigby.
The King, who has come up from his Highgrove estate in Gloucestershire, will meet the new and old PMs in the Palace's Chinese Dining Room, which is being used for audiences while the Palace undergoes repairs.