Andy Burnham Sacks Rachel Reeves, Appoints John Healey as Chancellor
Burnham Appoints Healey Chancellor in Cabinet Shake-Up

New Prime Minister Andy Burnham has unveiled his cabinet just hours after taking office, making John Healey his Chancellor in a bombshell appointment. Healey, who resigned as Defence Secretary last month over funding concerns, replaces Rachel Reeves, who was sacked alongside other Starmer loyalists.

John Healey Appointed Chancellor

Healey, in a statement on X, called the role the "greatest privilege" and said: "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." The former Defence Secretary had dramatically quit Sir Keir Starmer's government over a lack of funding for the armed forces.

Major Cabinet Clean-Out

Burnham sacked many of his predecessor's closest allies, including Deputy Prime Minister David Lammy, Attorney General Lord Richard Hermer, Housing Secretary Steve Reed, Technology Secretary Liz Kendall, Business Secretary Peter Kyle, Chief Secretary Darren Jones, Wales Secretary Jo Stevens, and Northern Ireland Secretary Hilary Benn. Rachel Reeves was offered a "big job" but declined, according to reports.

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Ed Miliband, former Energy Secretary, was appointed Foreign Secretary, while Shabana Mahmood remained Home Secretary. Both had been considered top contenders for Chancellor. Mahmood said on X: "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." She added that she would continue with immigration reform.

Louise Haigh Returns

Louise Haigh, who resigned as Transport Secretary after pleading guilty to a fraud offence a decade ago, becomes Chancellor of the Duchy of Lancaster and first secretary of state—a role previously held by George Osborne, William Hague, and Lord Peter Mandelson.

Reactions from Ousted Ministers

Steve Reed used his resignation letter to tell Burnham he hoped "those who did not show loyalty to Keir will now show it to you." Rachel Reeves posted on X: "It has been the privilege of my life to serve as the Chancellor of the Exchequer... I wish the very best of luck to my successor, Andy and his Cabinet." Lord Hermer said it was "the privilege of my life" to serve, particularly proud of the Hillsborough Law and rebuilding the UK's reputation abroad. David Lammy said he would support the government "from the backbenches."

Further Resignations

Prisons minister Lord James Timpson, who oversaw early prisoner releases, was the first to announce his resignation, followed by science minister Lord Patrick Vallance.

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