Andy Burnham used his first hours as prime minister to purge loyalists of his predecessor Sir Keir Starmer, appointing veteran Labour figure John Healey as chancellor and pledging to "bring back hope" to Britain. In a Downing Street speech, Burnham promised the "biggest changes in the last 40 years" and a 10-year "new plan for Britain", with immediate help on the cost of living.
Out went Rachel Reeves as chancellor, David Lammy as deputy prime minister and justice secretary, and Steve Reed as communities secretary. Healey, who quit Starmer's government in a row over defence spending, now faces the challenge of finding extra money for defence commitments while meeting fiscal rules. "We will work in lockstep to meet the fiscal rules with a buffer against uncertainty," Healey told broadcasters, vowing to "make life more affordable for working people right across the UK."
“Andy Burnham sacks Starmer loyalists, appoints John Healey chancellor, and cuts VAT on energy bills funded by scrapping Digital ID.”
Ed Miliband moved from energy secretary to foreign secretary, calling it the "honour of my lifetime". Yvette Cooper becomes health secretary, Shabana Mahmood remains home secretary, and Louise Haigh takes on a cabinet office role. Angela Rayner returns as housing secretary after resigning in September 2025 over a stamp duty underpayment on her £800,000 Hove flat. Wes Streeting, former health secretary and one-time leadership challenger, becomes defence secretary.
Burnham's first major policy announcement came less than 24 hours into his premiership: removing VAT from domestic energy bills from 1 October, saving households around £45 a year. The government said the £850m cost for the rest of the year would be funded by scrapping the Digital ID programme, which had an allocation of £1.8bn over three years. However, sacked cabinet minister Darren Jones immediately questioned the funding, posting on X that the Digital ID programme "was unfunded" and demanding a budget.
Conservative leader Kemi Badenoch welcomed Burnham but said he had not "set out a clear plan for government", calling him a "people pleaser" who would undo Margaret Thatcher's policies. The reshuffle also saw Heidi Alexander re-appointed as transport secretary, Douglas Alexander as Scotland secretary, Ellie Reeves as attorney general, and Stephen Kinnock as Wales secretary.
The purge of Starmer allies signals a sharp break with the past, but the immediate test for Burnham will be whether his promises of hope and breathing space can survive the fiscal reality inherited from his predecessor.
