John Healey has been named chancellor in Andy Burnham’s first Cabinet appointment.
Healey resigned as defence secretary last month, in protest at Keir Starmer’s defence investment plan.
Our political editor Pippa Crerar writes:
Burnham’s team were clear they want an experienced figure to deliver his vision for UK economy – combining fiscal responsibility with focus on re-industrialisation, devolution, cost of living crisis and driving growth.
Healey quit cabinet last month accusing Keir Starmer and Rachel Reeves of putting the UK’s security at risk, saying defence investment plan fell well short.
He will now be responsible for finding the money to raise military spending to 3% by 2030. Could he opt for defence bonds to do so – which he argued for from MoD – even though it was dismissed as extra borrowing.
Yvette Cooper and Pat McFadden have left Downing Street.
McFadden, who has been work and pensions secretary under Keir Starmer, had been seen walking into No 10 with Cooper shortly before 7pm.
Andy Burnham has appointed his first cabinet, with the new prime minister rewarding those who have been loyal to his takeover efforts.
He had promised to pick his top team from all wings of the party in an effort to show he is trying to run a more inclusive administration.
But at the same time, his decision to have a brutal clearout of Starmer allies resulted in many considered to be on the right of the party or close to the former prime minister losing their jobs.
These are the key announcements so far:
In goes education secretary Bridget Phillipson and Burnham ally Lucy Powell.
There really are quite a few inside No 10 at the moment. It feels inevitable that a slew of appointments are going to be announced at the same time shortly.
Anneliese Midgley, the MP who emerged as one of Burnham’s closest allies during the Makerfield by-election campagin, has just gone into No 10.
Shabana Mahmood said the post of home secretary is “the best job in the business”, after Andy Burnham kept her in the role.
In a post on X, Mahmood said she would continue with immigration reform.
She said: “It is an honour to remain as Home Secretary in Andy Burnham’s cabinet.
“I may be biased, but it’s the best job in the business.
“We have begun the work of major reform, to make our streets safer and our immigration system fair for all. Now let’s finish the job.”
New chancellor John Healey said it is the “greatest privilege” to take on the role.
In a statement posted on X, he said: “It is the greatest privilege to be appointed Chancellor of the Exchequer by the Prime Minister.
“Together, we will build a new economy, build new hope and advance the working people of this country.
“Time to get on with the job.”
Chief whip Jonathan Reynolds is the latest to enter No 10 to meet with Burnham and his team.
He has been mooted in the press for a move back to business secretary – a role he was reportedly loathe to give up in the first place.
Former deputy prime minister Angela Rayner has gone into No 10.
She has widely been expected to make a comeback in a big cabinet role.
The secretary of state for culture, media and sport Lisa Nandy has just entered No 10.
There have been rumours she could be moved to the housing brief.
As expected, Louise Haigh has been named as Andy Burnham’s first secretary of state, chancellor of the Duchy of Lancaster and minister for the Cabinet Office.
Haigh left her post as transport secretary under Keir Starmer in 2024 and has been planning Burnham’s ascent to power since last year.
The former foreign secretary Yvette Cooper has also entered No 10 – shortly before Ed Miliband was appointed to that role.
More on her future as we get it.
Shabana Mahmood will remain in her role as home secretary, it has been confirmed.
Ed Miliband has been named foreign secretary in Andy Burnham’s cabinet.
Pat McFadden, the secretary of state for work and pensions, has just gone into No 10.
He is very much seen as close to former prime minister to Keir Starmer, so his inclusion in Burnham’s cabinet further reinforces the new prime minister’s pledge to bring in all factions of the Labour party.
The departure of Europe minister Nick Thomas-Symonds, will be a blow to EU counterparts who were hoping he would remain in post in Andy Burnham’s new cabinet.
Only last week the outgoing EU ambassador to the UK Pedro Serrano heaped praise upon him for helping to heal the tattered pre-Brexit relationship with the EU.
But some EU diplomats complained that Keir Starmer’s bid to “reset” that relationship had lost momentum with no deal in site for youth mobility in particular, in a row over tuition fees for EU citizens.
However, UK sources were frustrated with the EU’s insistence on home fees for EU citizens wishing to study in the UK, expressing concern they did not understand the financial pressure that would pose for some cash-strapped British universities.
