Andy Burnham has made his first Cabinet appointment as Prime Minister, naming John Healey as Chancellor of the Exchequer. Healey replaces Rachel Reeves, who confirmed her departure from the Cabinet on social media. David Lammy has also left his post as Deputy Prime Minister, a role to which he was appointed by Keir Starmer last year.
Burnham's First Speech and Vision
Speaking without a lectern or notes, a break from tradition, Burnham outlined his vision for the UK in a 10-minute address. He vowed to set out a plan to end rough sleeping as his first action. However, minutes after this pledge, Housing Secretary Steve Reed resigned. Lammy and Reeves have since stated they are no longer part of Burnham's Cabinet, though no replacements have been officially named for their roles.
Burnham said: "I will bring forward a new plan for Britain, a 10-year plan laying out a path from where we are now to where I believe we all want Britain to be, wherever we're coming from, whatever party we support. But I can do something to give people some breathing space now, some help with the cost of living." He added that he would set out measures starting tomorrow, including how they will be paid for.
Key Cabinet Departures
Rachel Reeves, in a statement, said: "It has been the privilege of my life to serve as the Chancellor of the Exchequer. The economy today is stronger, fairer and more resilient because of the choices we have taken as a Labour Government over the past two years." She wished her successor and Burnham the best.
David Lammy, in his resignation letter, noted his achievements as Foreign Secretary and Justice Secretary, including rebuilding relations with European allies and recognizing the State of Palestine. He said: "A new Prime Minister is entitled to build his own team, and I wish Andy Burnham and the new Cabinet every success."
Steve Reed, in a letter to Burnham, expressed disappointment at leaving the Government but listed his accomplishments, including exposing anti-Jewish racism in the party. He warned Burnham about devolution plans, stating: "You can’t make funding fairer for the rest of England by making it unfair on Londoners."
Pledge to End Rough Sleeping
Burnham pledged to "end rough sleeping in our country" as one of his first instructions. Downing Street described rough sleeping as one of the "starkest injustices in the country" and announced an initial £340 million boost in funding to help at least 3,000 rough sleepers. Hours before his speech, Burnham visited the homelessness charity The Passage in London.
During the visit, Burnham referred to the "Everyone In" scheme from the Covid crisis, which helped thousands of rough sleepers. He acknowledged that rough sleeping rose during his tenure as Greater Manchester Mayor but said: "What I learned was, we ran a scheme every night, 600 beds, called A Bed Every Night and we funded it through various different ways."
International Calls
Burnham spoke with US President Donald Trump, congratulating him on the World Cup and expressing hope to show him what Manchester has to offer. A Downing Street spokesperson said: "The Prime Minister also hoped that he would be able to show the president what Manchester had to offer during a visit in the future." They discussed reindustrialisation, defence, and the Strait of Hormuz.
Burnham also spoke with Ukrainian President Volodymyr Zelenskyy, who said: "I truly appreciate that the support for Ukraine and our people will remain steadfast." They agreed to discuss future cooperation, including work within the Anti-Ballistic Coalition.
Market Reaction
Government borrowing costs rose and the pound weakened after Burnham became Prime Minister. The yield on 10-year government bonds rose eight basis points to 5.049%, while the pound slipped 0.29% to $1.341. The FTSE 100 finished 0.71% lower at 10,524.76 points.
Other Departures
Several other ministers announced their departures, including Northern Ireland Secretary Hilary Benn, Wales Secretary Jo Stevens, Technology Secretary Liz Kendall, Attorney General Lord Richard Hermer, and Chief Secretary Darren Jones. Jones said Burnham told him he would not be part of the new Cabinet.
Nick Thomas-Symonds left his post as EU relations minister, and Foreign Office minister Baroness Jenny Chapman also stepped down, saying cutting the aid budget had been "challenging" but that the UK is "once again a force for good internationally."
