Angela Rayner has returned to government as Housing Secretary, joining Andy Burnham's top team at No10 for his first Cabinet meeting. The Ashton-under-Lyne MP resigned from the same role in Sir Keir Starmer's cabinet, along with her jobs as Labour's deputy leader and deputy prime minister, over her tax affairs last year. She has since been cleared of any wrongdoing by HMRC.
Cabinet overhaul
New Education Secretary Lucy Powell was the first to arrive, less than 24 hours after an overhaul that saw many of Keir Starmer's allies dispatched to the backbenches. New Chancellor John Healey took his seat at the top table, weeks after he quit as Defence Secretary. He accused the Treasury of failing to provide funds needed to defend the nation. Wes Streeting, who also quit last month in protest over Starmer's leadership, takes on the Defence role.
Ed Miliband attended as Foreign Secretary for the first time, while Shabana Mahmood remains Home Secretary. Yvette Cooper was shifted to Health Secretary. Chancellor of the Duchy of Lancaster Louise Haigh and Education Secretary Lucy Powell are among those returning to the Cabinet. New faces include Anneliese Midgley and Energy Security Secretary Miatta Fahnbulleh.
First Cabinet meeting without Starmer allies
This was the first Cabinet meeting since Labour came to power that did not include Rachel Reeves, David Lammy, Peter Kyle or Liz Kendall. They were removed in one of Mr Burnham's first acts as Prime Minister, along with Starmer allies Steve Reed and Lord Richard Hermer.
Those remaining in the same jobs include Transport Secretary Heidi Alexander, Culture Secretary Lisa Nandy and Pat McFadden, who continues to lead the Department for Work and Pensions.
Energy tax cut announced
On Tuesday morning, the government announced an £850 million tax cut on energy bills. From October 1, energy bills will be VAT free, saving households around £45. The move will be funded in part by scrapping Mr Starmer's digital ID project, estimated to cost around £600 million a year over three years.
Prime Minister Burnham said: "I said I wanted to give people breathing space, and that's what I'm announcing on my second day as Prime Minister. We're taking immediate action to cut taxes on energy bills, put more money in people's pockets and bring back hope."
Chancellor John Healey said: "For too long, too many people have struggled with the cost of living. Today's energy tax cut will give families some breathing room on bills, and provide some reassurance this winter."
