London outgoing UK Prime Minister Keir Starmer has defended his two-year record in office, saying Britain is “stronger and fairer” as he formally stepped down on Monday and handed power to Labour successor Andy Burnham.

In a farewell speech outside 10 Downing Street before travelling to Buckingham Palace to tender his resignation to King Charles III, Starmer said he was leaving office with pride despite mounting political pressure that forced his resignation last month.

“I am confident that Britain is now stronger and fairer than it was two years ago,” Starmer said.

“I go with good grace, I go with a smile, and I go proud of everything that we have achieved.”

King Charles is expected to formally invite Burnham to form a new government, making the former Greater Manchester mayor Britain’s sixth prime minister in a decade.

Burnham inherits a difficult political and economic landscape, including sluggish economic growth, rising government borrowing costs, persistent cost of living pressures and growing support for Nigel Farage’s Reform UK party.

Ahead of taking office, Burnham pledged to restore confidence in government, boost economic growth and devolve more powers to regional communities. He also promised early measures to ease the cost of living crisis and signalled a shift in economic policy towards greater investment and early intervention.

One of his first decisions was to scrap Starmer’s proposed nationwide digital ID scheme, estimated to cost £1.8 billion over three years, saying the resources would instead be redirected to priorities such as helping households cope with living costs.

Starmer, who led Labour to a landslide election victory in July 2024 after 14 years of Conservative rule, announced his resignation in late June following a series of scandals, policy reversals and political setbacks.

Burnham, who returned to Parliament only four weeks ago before securing the Labour leadership, described his appointment as the party’s “last chance” to regain public trust as Reform UK continues to gain ground in opinion polls ahead of the next general election expected in 2029.

The new prime minister is expected to announce his cabinet appointments later on Monday, including a replacement for outgoing finance minister Rachel Reeves.