Burnham Seizes Power, Reeves Ousted in Sweeping Cabinet Reshuffle
New Prime Minister Andy Burnham immediately dismantles Starmer's cabinet, vows to tackle homelessness and cost of living crisis.
Sarah Connor
Andy Burnham has ascended to the United Kingdom's premiership, immediately initiating a dramatic cabinet reshuffle that saw Rachel Reeves removed as Chancellor and several key ministers resign.
Andy Burnham ascended to Prime Minister following Sir Keir Starmer's resignation, a move precipitating a rapid leadership change.
Rachel Reeves, the former Chancellor, lost her pivotal cabinet role, though allies claimed she declined an offer for another senior government position.
Reeves maintained the economy stands stronger, fairer, and more resilient today, citing choices made by the Labour government over the past two years.
She asserted stability was restored, investment delivered, and economic reform initiated during her tenure, expressing pride in improving the lives of ordinary working-class people.
Stability was restored, investment delivered, and economic reform initiated during her tenure.
John Healey now serves as Chancellor, taking over from Reeves and signaling a new direction for the nation's economic policy.
Ed Miliband became Foreign Secretary; he entered No 10 with Shabana Mahmood, marking a shift in diplomatic leadership.
Louise Haigh now holds the titles of First Secretary of State, Chancellor of the Duchy of Lancaster, and Minister for the Cabinet Office, consolidating significant power within the new government.
The reshuffle extended beyond the cabinet's inner circle; several junior ministers, including Lord James Timpson and Lord Patrick Vallance, announced their resignations earlier on Monday.
High-profile figures also exited, including David Lammy, formerly Deputy Prime Minister and Foreign Secretary, who announced his departure on social media.
Lammy stated that as Foreign Secretary and Deputy Prime Minister, he helped rebuild Britain's relationships with European allies after the Brexit years.
He also noted his role in standing with Ukraine, championing a new partnership with the global south, and Britain's recognition of the State of Palestine.
Darren Jones, Sir Keir’s chief secretary, also departed, stating Burnham informed him he would not be part of the new cabinet.
Further solidifying the clear-out of Starmer's inner circle, Peter Kyle, who held the business secretary position, also lost his job.
Jo Stevens lost her position as secretary of state for Wales, while Hilary Benn, who served as Northern Ireland secretary, and Baroness Jenny Chapman of Darlington, a Foreign Office minister, are also gone.
The breadth of the purge further illustrated itself with the departure of Nick Thomas-Symonds, formerly EU relations minister and paymaster general.
Housing Secretary Steve Reed resigned from his position, expressing disappointment at leaving the government now in a letter to Burnham.
Angela Rayner now serves as Housing Secretary, a key appointment, while Shabana Mahmood remains Home Secretary, maintaining continuity in a crucial department.
Burnham wasted no time outlining his immediate priorities, issuing a first instruction to officials: end rough sleeping across the nation.
He also indicated new cost of living support measures will be announced, promising early “breathing space” for households facing economic pressures.
The new Prime Minister further announced plans to scrap Sir Keir Starmer's digital ID programme, reversing a key policy of the previous administration.
His government will adhere to Labour's 2024 manifesto promise, prohibiting new oil and gas drilling licenses in the North Sea, a move with significant environmental and economic implications.
Historically, such rapid and extensive cabinet changes follow a change in leadership, reflecting a new prime minister's desire to stamp authority and direction on government.
Beyond the political shifts, the yield on 10-year Government bonds (gilts) moved eight basis points higher to 5.049% at the end of London trading, marking the highest cost of UK state borrowing in approximately two months.
The value of the pound slipped by 0.29% to 1.341 against the US dollar, and the FTSE 100 finished 0.71% lower at 10,524.76 points, reflecting immediate market reactions to the political upheaval.
This economic backdrop includes UK gross domestic product (GDP) growing at 0.1% in May, following a contraction of 0.1% in April, providing a mixed picture for the new government.
Burnham promised to deliver the biggest change to British politics in 40 years and set out a goal of “reindustrialising Britain,” outlining an ambitious vision for the nation's future.
I would use any flexibility I could find within existing fiscal rules. All new spending plans will be fully funded and I will not be taking risks with the economy.
He told reporters he would use “any flexibility” he could find within existing fiscal rules, stating all new spending plans will be fully funded and he will not be “taking risks with the economy.”