ANDY Burnham executed a brutal purge of Sir Keir Starmer’s Cabinet allies in his first move at No10.
The new Prime Minister shocked Westminster yesterday by revealing John Healey as his Chancellor after sacking Rachel Reeves.
New PM Andy Burnham arrives at his new home with his wife Marie-France van Heel Credit: AFP
PM Burnham soaks up the party atmosphere with supporters in Downing Street Credit: Getty
Eco-crusading Ed Miliband had been gunning for the Treasury job — but was instead packed off abroad as Foreign Secretary.
Shabana Mahmood remained as Home Secretary to continue pushing through her immigration reforms.
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Ms Reeves was one of the loyalists of outgoing PM Sir Keir Starmer who were pushed out as Mr Burnham cleared the decks on his first day in Downing Street.
Other casualties included David Lammy, Lord Hermer, Peter Kyle, Steve Reed, Liz Kendall, Nick Thomas-Symonds, Darren Jones, Jo Stevens and Hilary Benn.
BITTER, KEIR?
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NEW HIKE
Andy Burnham weighing up bringing back 50p tax rate in bid to balance books
The new PM pauses to give his mum Eileen a hug in Downing Street Credit: PA
Britain’s newly appointed Prime Minister Andy Burnham delivers a speech outside 10 Downing Street Credit: Getty
They made way for Mr Burnham’s pals including comebacks for Angela Rayner and Louise Haigh — who were both forced to resign during Sir Keir’s tenure.
Ms Rayner, who quit in September over stamp duty on her flat in Hove, East Sussex, is back as Housing Secretary.
Ms Haigh departed in November 2024 after her fraud conviction was revealed.
She has now become Chancellor of the Duchy of Lancaster.
Hugging supporters as he takes up his new role Credit: Getty
Sir Keir Starmer delivers his farewell speech Credit: Splash
But the biggest surprise was the appointment of Mr Healey as Chancellor — only a month after he had quit as Defence Secretary in a dispute over military spending.
Downing Street sources said he was chosen as he shares Mr Burnham’s approach to the economy, combining fiscal discipline with investment to drive growth and regenerate industrial communities.
They also pointed to past Treasury experience under Gordon Brown when he was Chancellor, serving for five years as Economic Secretary and Financial Secretary.
Mr Healey said it was “time to get on with the job”.
He vowed to work in “lockstep” with Mr Burnham to meet strict fiscal rules and help in the cost-of-living fight.
Mr Healey added: “Fiscal control is the first duty of any Chancellor — it is mine — and fiscal credibility is the bedrock . . . for economic stability and for national security.
“You heard the Prime Minister this afternoon say, in this more dangerous world, we will meet our commitments on defence to our international allies.”
He now faces the task of finding the billions needed to deliver Mr Burnham’s defence promises without breaking Labour’s fiscal rules.
Late last night Wes Streeting was named Defence Secretary, succeeding Dan Jarvis who was in the role for less than six weeks.
Team Burnham was frustrated to discover that £4.7billion of the £15billion defence spending uplift was unfunded.
Yvette Cooper was demoted from Foreign Secretary to make way for Mr Miliband, becoming the Health Secretary instead.
Lucy Powell was made Education Secretary, with her divisive predecessor Bridget Phillipson demoted to keeping only part of her brief, remaining Minister for Women and Equalities.
Pat McFadden is staying as Welfare Secretary to sort out the crippling benefits bill, while Lisa Nandy stays as Culture Secretary.
Jonathan Reynolds returned to his old role as Business Secretary, and little-known Anneliese Midgley was named Chief Whip.
Ed Miliband’s protégée Miatta Fahnbulleh takes over from him as Energy Secretary.
Angela Eagle was named Environment Secretary and Alex Norris Justice Secretary.
In his first speech outside Downing Street, Mr Burnham had promised “a circuit breaker for Britain”.
He said his Government would bring forward “the biggest changes in the last 40 years” through “a new political model and a new economic model”.
But he acknowledged that his ten-year plan for delivering that transformation would not be unveiled until later this year.
He instead promised there would be immediate action on the cost-of-living crisis.
He said families would get “some breathing space” when he announces his first measures and explains “how we pay for them”.
The former Mayor of Greater Manchester also pledged education reforms, better mental health support for young people, more council homes and to end rough sleeping in England.
Ms Mahmood retained the Home Office after narrowly missing out on the Treasury.
Sources close to Ms Mahmood insisted she made clear in the reshuffle process that she wanted to remain in the Home Secretary role.
They said she would now focus on delivering the Government’s pledge to make Britain’s streets safer and create a fairer immigration system.
Yet the scale of the bloodbath left little doubt Mr Burnham wanted a clean break from the Starmer era.
Ms Reeves insisted it had been “the privilege of my life” to serve as Chancellor.
It is understood she was offered a significant job but decided to turn it down.
Former Deputy Prime Minister Mr Lammy said he would have been “proud” to continue serving in Cabinet, but accepted that “a new Prime Minister is entitled to build his own team” and pledged to support the Government from the backbenches.
But former Housing Secretary Steve Reed used his resignation letter to deliver a pointed message to Mr Burnham over his coup.
He wrote: “I hope those who did not show loyalty to Keir will now show it to you.”
Mr Reed also urged him not to overlook southern voters, warning Labour must govern for the whole country if it is to earn a second term in office.
Mr Burnham had been joined by his family for his arrival.
His wife, Dutch-born Marie-France van Heel, was with him outside No10, and he also hugged his mum Eileen.
OUT
MINISTERS bid farewell to Sir Keir Starmer outside Downing Street yesterday. With many losing their jobs, too.
From left, Attorney General Lord Hermer, Justice Secretary David Lammy and Chancellor Rachel Reeves all later lost their roles Credit: Shutterstock Editorial
Liz Kendall is out as Technology Secretary Credit: PA
Peter Kyle had been the Business Secretary Credit: PA
Steve Reed lost his job as Housing Secretary Credit: PA
Former Secretary of State for Wales Jo Stevens Credit: PA
Hilary Benn was Northern Ireland Secretary Credit: PA
Darren Jones was Chief Secretary to the Prime Minister Credit: PA
International Development’s Baroness Chapman Credit: Alamy
Nick Thomas-Symonds is out as Paymaster General Credit: PA
IN
PRIME Minister Andy Burnham welcomes his new Chancellor of the Exchequer, former Defence Secretary John Healey, inside No10 — the first appointment of the reshuffled Cabinet.
New PM Burnham appoints John Healey as Chancellor of the Exchequer in 10 Downing Street Credit: Crown Copyright
Ed Miliband takes the position of Foreign Secretary Credit: EPA
Louise Haigh has been named First Secretary of State Credit: Alamy
Angela Rayner is making a return as Housing Secretary Credit: Reuters
Yvette Cooper is demoted to Health Secretary Credit: PA
Role of Education Secretary goes to Lucy Powell Credit: PA
Shabana Mahmood will remain the Home Secretary Credit: EPA
Role of Defence Secretary for Wes Streeting Credit: PA
