Andy Burnham’s Downing Street operation is beginning to take shape, with many of Keir Starmer’s aides due to remain at the centre of government.

The incoming prime minister has now picked most of the senior No 10 jobs, according to those who have been involved in the process, and the names of several key staff were confirmed on Thursday.

The new team will oversee policy announcements next week, sources said, including new details of his policies on energy, water and the cost of living.

Many of those who advised Starmer have been asked to stay on, including Jonathan Powell, the national security adviser, Varun Chandra, the No 10 business adviser, and Graeme Cooke, who is being promoted to run the policy unit.

Several others have been brought in from the private sector. They include James Purnell, the former chief executive of the business advisory group Flint Global, who will be chief of staff, and Hayden Munro, who is being recruited from another lobbying group Arden Strategies, to be political director.

Most have some kind of link to established Labour politics. The press team will be led by the former Sadiq Khan aide Sarah Brown, while Grace Pritchard, the former special adviser to Ed Miliband, will be the prime minister’s spokesperson. The Guardian has learned that John Stevens, a former journalist, will remain in No 10 as press secretary.

Others, however, are coming from outside, including Matthew McGregor, who is joining from the campaign group 38 Degrees, as director of political strategy.

The Guardian has also been told that Alison Phillips, the former editor of the Mirror and chief executive of the thinktank ThinkLabour, will be made transition director, with a view to avoiding some of the early mistakes that befell Starmer.

A spokesperson said: “Her priority will be to establish No 10 as an effective team that can deliver Andy’s ambition to give Britain breathing space in the cost of living, deliver growth in every postcode and return power to communities. She has led large and complex organisations, delivering results and overseeing cultural change.”

Labour insiders said Burnham is keen to provide stability to the No 10 operation after the turbulence of his Makerfield campaign and Starmer’s decision to leave office.

Business groups, which have complained about not having anyone to talk to inside the incoming prime minister’s team, were delighted that Chandra was to remain in place.

However, some worry the makeup of the Downing Street team shows Burnham is shying away from the kind of policy radicalism he has previously promised.

“This is very much Continuity Keir,” said one person briefed on the moves. “These are good, competent people. But if you expected them to pursue a radically different type of politics, you will be disappointed.”

One person close to Burnham said, however: “We will have a leader at the top who is inherently political and the people he has picked are passionate about driving his vision for radical reform and change.”

Since being elected as Makerfield MP, Burnham has had to strike a careful balance between offering MPs and voters the kind of radical political change he has promised and giving reassurance to business and the markets about his plans.

The prime minister and his closest allies have been talking to civil servants in recent days about their policy options, with a view to making a series of announcements soon after Burnham becomes prime minister on Monday.

Some are likely to signal radical change, such as confirmation that Burnham wants to put water companies including Thames Water into public ownership, and intends to take immediate action to reduce the cost of living. Options include full nationalisation or some form of mutual ownership, with local government and workers having representation on boards.

On the cost of living, allies expect him to take steps to reduce housing costs, potentially including a freeze on private sector rents.

But other policies are likely to upset some on the left. Burnham is reported to be preparing to signal his willingness to drill more for oil in the North Sea, though he intends to stick to the manifesto pledge not to issue new licences.

Allowing more drilling could include granting environmental permission for the Rosebank and Jackdaw mega-fields, though a final decision on both of those will be taken on a legal basis once consultations have been completed.