Angela Rayner is back in government just ten months after quitting in disgrace over a tax scandal, as new Prime Minister Andy Burnham unveiled a dramatic cabinet reshuffle that saw Rachel Reeves ousted as Chancellor.
Burnham, who took office hours earlier, moved swiftly to install his top team, pledging “the moment when Britain starts to believe again”. In one of his first surprise moves, he named John Healey as Chancellor of the Exchequer, replacing Reeves. Healey’s appointment came just weeks after he dramatically resigned as Defence Secretary, lashing out at the Treasury for not setting aside enough cash for defence.
“Angela Rayner returns to cabinet less than a year after quitting over tax scandal as Burnham replaces Reeves with Healey.”
Ed Miliband was named Foreign Secretary, a role seen by some as a consolation prize after Burnham snubbed him for Chancellor. Shabana Mahmood remains Home Secretary, having last week set out a controversial Immigration and Asylum Bill that includes charging successful asylum seekers £10,000. Wes Streeting, who initially intended to challenge Keir Starmer for the Labour leadership, becomes Defence Secretary, taking over less than six weeks after predecessor Dan Jarvis was appointed amid a fierce row over defence spending. Jarvis had delivered the government’s long-awaited Defence Investment Plan, but much of its funding relies on savings yet to be identified.
Lucy Powell becomes Education Secretary, replacing Bridget Phillipson, who remains in cabinet as Minister for Women and Equalities. Other high-profile departures include David Lammy, Liz Kendall, Peter Kyle and Steve Reed. The reshuffle also sees a return to the top table for Louise Haigh.
Burnham’s overhaul of his top team comes little more than 10 months after Rayner quit Keir Starmer’s administration following her tearful admission she failed to pay correct tax. With Healey, a long-serving MP who served under Tony Blair, Gordon Brown and Starmer, now at the Treasury, questions linger over how the new chancellor will reconcile his defence priorities with the fiscal challenges ahead.