US President Joe Biden has congratulated the new UK Prime Minister Keir Starmer, said The White House, reported BBC.

The pound advanced Friday after Britain's centre-left Labour Party clinched an expected landslide election victory to end 14 years of right-wing Conservative rule.

London's benchmark FTSE 100 index gave up early gains made following news that Keir Starmer would become Britain's new prime minister after Labour trounced Rishi Sunak's Conservatives as Wall Street opened.

Labour's widely forecast triumph has sparked investor hope of economic stability amid easing inflation, although Starmer faces tough challenges in the form of strained public finances, a stretched state health service and flagging economic growth.

"The main beneficiaries of the UK election result were UK housebuilders which gained around 3% on the day while banks and energy companies slid," said Axel Rudolph, senior market analyst at online trading platform IG.

Labour's David Lammy becomes Britain's next foreign secretary pledging to reset relations with the European Union and push for a ceasefire in Gaza, while seeking to build ties with Donald Trump's Republican Party.

The centre-left Labour Party won a landslide victory in Thursday's parliamentary election, ending 14 years of Conservative government and vowing to bring change to Britain.

While the six initial priorities promised in its election manifesto focussed on domestic matters, a long list of international issues awaits Lammy in his in-tray.

Spain's socialist Prime Minister Pedro Sanchez on Friday congratulated new British premier Keir Starmer and hailed Labour's "historic victory" in UK elections.

"Congratulations Keir Starmer, new prime minister of the United Kingdom. Congratulations, Labour, for the historic victory for labourism. Spain and the United Kingdom are friends, partners and allies," Sanchez wrote on X.

New Prime Minister Keir Starmer on Friday appointed David Lammy as Britain's new foreign minister and John Healey the defence minister, while Yvette Cooper was named interior minister.

Lammy and Healey take charge at a time of two global conflicts and have pledged to maintain continued support for Ukraine in its conflict against Russia and press for a ceasefire in the fighting in Gaza.

New British Prime Minister Keir Starmer on Friday appointed Rachel Reeves as finance minister, or Chancellor of the Exchequer, in his new Labour government, making her the first woman to hold the role.

Pakistani Prime Minister took to X, formerly known as Twitter, to congratulate Labour Party's Keir Starmer for his landlside victory in UK general election.

Scottish First Minister John Swinney said that UK general election result "incredibly tough" for his Scottish National Party.

The EU on Friday congratulated Keir Starmer on Labour's election win in Britain, with Brussels foreseeing warmer ties with London — though little scope to change existing post-Brexit arrangements.

European Council President Charles Michel called Starmer's victory "historic", and stressed the EU and Britain "are crucial partners".

European Commission chief Ursula von der Leyen added she looked forward to working with Starmer "in a constructive partnership to address common challenges and strengthen European security."

New UK prime minister Keir Starmer has finished speaking outside Downing Street. He concluded his speech by saying his government would “defy quietly those who have written our country off.”

He said: "You have given us a clear mandate, and we will use it to deliver change. To restore service and respect to politics. End the era of noisy performance. Tread more lightly on your lives. And unite our country."

"Four nations standing together again. Facing down, as we have so often in our past, the challenges of an insecure world. Committed to a calm and patient rebuilding. So with respect, and humility I invite you all to join this government of service, in the mission of national renewal. Our work is urgent and we begin it today. Thank you very much," he added.

In an earlier part of the speech he said: “Brick by brick we will rebuild the infrastructure of opportunity. The world class schools and colleges. The affordable homes that I know are the ingredients of hope for working people.”