Andy Burnham names John Healey as chancellor in first major reshuffle appointment – UK politics live

Politics live with Andrew SparrowPolitics Andy Burnham names John Healey as chancellor in first major reshuffle appointment – UK politics live Rachel Reeves, David Lammy and Peter Kyle have said they are leaving government as the new prime minister picks his top team Burnham vows his arrival in power will be ‘circuit breaker’ moment for UK Six highlights from Andy Burnham’s first Downing Street speech LIVE Updated 6m ago Nadeem Badshah (now); Tom Ambrose and Andrew Sparrow (earlier) Mon 20 Jul 2026 18.24 BSTFirst published on Mon 20 Jul 2026 08.38 BST Share Key events 12m ago John Healey named chancellor 1h ago Starmer ally Darren Jones sacked from Burnham's cabinet 1h ago Wales secretary Jo Stevens sacked from cabinet 2h ago Trump expected to meet Burnham in Manchester for G20 summit in 2027 - report 2h ago Liz Kendall out as science and technology secretary 2h ago Burnham confirms he is looking at cutting energy bills and bus fares 2h ago Lord Hermer departs as attorney-general 2h ago Chancellor Rachel Reeves leaves government 3h ago Peter Kyle out as business secretary 3h ago Deputy prime minister and justice secretary David Lammy sacked 3h ago Steve Reed out as housing secretary 3h ago Burnham making 'pledges without any plan for delivery', say Tories 3h ago Burnham speaks to president Trump - Sky News 4h ago Six highlights from Andy Burnham’s first Downing Street speech 5h ago Burnham's first speech as PM - snap verdict 5h ago Burnham says his first instruction as PM will be to end rough sleeping 6h ago Burnham says cost of living plans being announced tomorrow, and 10-year plan coming later this year 6h ago Burnham says his government will be 'circuit breaker', introducing 'biggest changes in 40 years' 6h ago Burnham says politicians 'need to be better', because UK has changed PMs too often in past decade 6h ago Burnham starts receiving congratulations from European leaders 6h ago Burnham appointed PM by king 6h ago What Burnham can expect from Trident nuclear missile briefing he will get soon after arriving at No 10 6h ago Andy Burnham arrives at Buckingham Palace 7h ago Starmer formally resigns as PM at meeting with king 7h ago Starmer says he's leaving No 10 with 'good grace' and a 'smile' 7h ago Starmer praises acts of 'resolve, grit, decency and compassion' done by millions of Britons every day 7h ago Starmer says Britain is 'stronger and fairer than it was 2 years ago' 7h ago Starmer gives final speech from Downing Street 9h ago Burnham confirms he is planning 'early moves' to help people with cost of living 10h ago Andy Burnham to become new prime minister and lay out ‘10-year plan’ for the UK in No 10 speech John Healey From 12m ago 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.

Key events 12m ago John Healey named chancellor 1h ago Starmer ally Darren Jones sacked from Burnham's cabinet 1h ago Wales secretary Jo Stevens sacked from cabinet 2h ago Trump expected to meet Burnham in Manchester for G20 summit in 2027 - report 2h ago Liz Kendall out as science and technology secretary 2h ago Burnham confirms he is looking at cutting energy bills and bus fares 2h ago Lord Hermer departs as attorney-general 2h ago Chancellor Rachel Reeves leaves government 3h ago Peter Kyle out as business secretary 3h ago Deputy prime minister and justice secretary David Lammy sacked 3h ago Steve Reed out as housing secretary 3h ago Burnham making 'pledges without any plan for delivery', say Tories 3h ago Burnham speaks to president Trump - Sky News 4h ago Six highlights from Andy Burnham’s first Downing Street speech 5h ago Burnham's first speech as PM - snap verdict 5h ago Burnham says his first instruction as PM will be to end rough sleeping 6h ago Burnham says cost of living plans being announced tomorrow, and 10-year plan coming later this year 6h ago Burnham says his government will be 'circuit breaker', introducing 'biggest changes in 40 years' 6h ago Burnham says politicians 'need to be better', because UK has changed PMs too often in past decade 6h ago Burnham starts receiving congratulations from European leaders 6h ago Burnham appointed PM by king 6h ago What Burnham can expect from Trident nuclear missile briefing he will get soon after arriving at No 10 6h ago Andy Burnham arrives at Buckingham Palace 7h ago Starmer formally resigns as PM at meeting with king 7h ago Starmer says he's leaving No 10 with 'good grace' and a 'smile' 7h ago Starmer praises acts of 'resolve, grit, decency and compassion' done by millions of Britons every day 7h ago Starmer says Britain is 'stronger and fairer than it was 2 years ago' 7h ago Starmer gives final speech from Downing Street 9h ago Burnham confirms he is planning 'early moves' to help people with cost of living 10h ago Andy Burnham to become new prime minister and lay out ‘10-year plan’ for the UK in No 10 speech Nick Thomas-Symonds is out as paymaster general and Cabinet Office minister, saying he is returning to the backbenches.

In a letter to prime minister Andy Burnham, he said: “I will support the new team of ministers from the backbenches and continue to serve the people of my home constituency of Torfaen, who, as always, remain my top priority.” John Healey has been named chancellor in Andy Burnham’s first Cabinet appointment.

Volodymyr Zelensky welcomed Andy Burnham’s assurance that the UK’s support for Ukraine would remain strong.

After speaking with the new PM, the Ukrainian president wrote on X: “I was happy to speak with Andy Burnham and congratulate him on taking office as Prime Minister of the United Kingdom.

“I truly appreciate that the support for Ukraine and our people will remain steadfast.

Thank you for your warm words of respect for the Ukrainian people and for your condolences to the families and loved ones of those killed in Russia’s recent attacks.

“Ukraine and the United Kingdom have built the strongest partnership in the history of relations between our two countries, and we will certainly continue working to expand it even further.

“We agreed to discuss our future cooperation, including our work within the Anti-Ballistic Coalition, during a meeting in the near future.

Thank you, Andy.

Thank you, Britain!” Northern Ireland secretary Hilary Benn has announced he is leaving the role.

In a statement on X, Benn said: “It has been a great privilege to serve as Secretary of State for Northern Ireland and to work with the many wonderful people I have met over the last 2 years.

“I wish my successor all the very best in working with the Executive to protect stability, continuing to generate growth and investment and in taking forward the Troubles Bill which is so important for so many families.

“The Prime Minister will have my full support from the backbenches.” Foreign Office minister Baroness Jenny Chapman of Darlington said she is leaving the government, as she said cutting the aid budget had been “challenging” and required “much soul searching”.

Chapman said: “It’s been a great honour to serve as international development minister, and in Keir Starmer’s cabinet.

“I’m disappointed to be leaving but wish the Prime Minister and his new team every success.

“Cutting the aid budget has been challenging and has required much soul searching, but I passionately believe thanks to the work we’ve done, we’re spending the money better than ever before.

“We have a modern strategy and approach, working in partnership with developing countries rather than in a paternalistic way, and keeping strong commitments on global health and humanitarian aid.” She added: “The UK is once again a force for good internationally.” Andy Burnham told US president Donald Trump this afternoon he hoped to show him what Manchester had to offer during a visit in the future.

A Downing Street spokesperson said: “The Prime Minister began by congratulating the President on a successful World Cup and agreed that England had an excellent tournament.

“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.

“Setting out his vision as Prime Minister of the United Kingdom, the Prime Minister said he would be focused on ensuring reindustrialisation up and down the country to ensure good growth in every postcode.

“The Prime Minister also underlined his commitment to defence and security and said ensuring the security of the UK and its Allies was at the top of his agenda.

“The President then updated on the situation in the Middle East, and the Prime Minister outlined the UK’s commitment to securing the movement of shipping in the Strait of Hormuz to support global supply chains and drive down costs for businesses and families across the country.” The UK government’s borrowing costs are edging higher on financial markets as investors react to Andy Burnham’s cabinet reshuffle and early hints over his tax and spending plans.

After Rachel Reeves announced her resignation as chancellor as the new prime minister puts together his government team, the yield – in effect the interest rate – on 10-year UK debt rose by about 0.08 percentage points to trade above 5%.

The pound also fell against the US dollar and the euro, on a volatile day in global markets amid escalating tensions in the Iran war.

As the Middle East conflict intensifies, investors point out that yields are rising everywhere.

However, the UK is seeing a bigger increase, with investors on high alert for any clues over Burnham’s plan for power.

Burnham telling reporters in the Downing Street garden that he could consider utilising “flexibility” in the fiscal rules to bolster public investment are being read by some investors he could ramp up borrowing.

The new PM also hinted he could consider raising the tax-free personal allowance – a change that would have big fiscal costs.

“I’ve said we’ll stick to the fiscal rules, and by that I mean the existing fiscal rules, and use obviously any flexibility within them,” Burnham told reporters.

Retaining the self-imposed borrowing and debt constraints drawn up by Reeves has been seen as key to avoiding a backlash in markets.

However, with spending pressures looming, Burnham’s appointment for chancellor could be forced to consider tax increases or other measures to help finance the new prime minister’s agenda for the economy.

It is worth pointing out the moves in financial markets remain relatively small compared to other big volatile days.

After Liz Truss’s mini budget in September 2022, long-dated UK government bond yields rose by more in four days than the annual increase in 23 of the past 27 years.

Things could also change quickly.

Reeves – who was a reassuring presence for City investors – may have gone, but Burnham’s new pick as chancellor has yet to be announced.

There are also no firm policy announcements to pore over, which will be of significantly more importance than any offhand comments to reporters.

Still, bond markets are finely poised and will begin moving before firm details materialise.

Many investors are also expecting Burnham to run a looser approach to the public finances than Starmer and Reeves.

Shabana Mahmood and Ed Miliband are walking along Downing Street and enter No 10 together.

The past few weeks have been rife with speculation that one or the other will become chancellor.

The wait to find out which will be appointed chancellor goes on.

But reporting in recent days appear to suggest Mahmood to the Treasury, with Miliband for the Foreign Office.

Right, I’m going to take a short break but my colleague Nadeem Badshah will be keeping you abreast of developments over the next hour or so.

Darren Jones, the chancellor of the Duchy of Lancaster, has confirmed he too is out of Andy Burnham’s cabinet.

Another close Starmer ally, Jones wrote on X: From the campaign trail and the TV studios to the Treasury, No10 and the Cabinet Office - it’s been a privilege to be in the cabinet of a Labour government and to serve the country.

Andy Burnham has called to tell me I won’t be a part of his new cabinet.

I wish him and his team every success.

John Healey, the former defence secretary, is making his way up Downing Street and enters No 10.

The media ask him what job he’s in line for.

He does not answer.

Let’s see what happens… Jo Stevens, the Wales secretary, has confirmed her departure from government.

In a statement on X, she wrote: I wish the new Prime Minister and my successor the very best in their new roles and know that they will do a great job, alongside our new Welsh Labour leader Ken Skates, in delivering for the people of Wales.

Her sacking marks the seventh secretary of state to leave the cabinet.

She added: “Wales has seen the biggest budget settlement for our public services in the history of devolution, our steel industry saved and transformed for the future, the largest public investment in Wales in history through new nuclear at Wylfa, a generational commitment of £14 billion for our Welsh railways, the best local growth fund settlement of any of the UK nations and so much more.” Government borrowing costs lifted higher and the value of the pound weakened after Andy Burnham became prime minister this afternooon.

The yield on 10-year government bonds, called gilts, moved eight basis points higher to 5.049% at the end of London trading, PA reported.

They had been largely steady after the new prime minister took over the role but lifted after he told reporters he would use “any flexibility” he could find within the existing fiscal rules.

The value of gilts decrease as the yield on them increases.

Meanwhile, the value of the pound slipped by 0.29% to 1.341 against the US dollar, having been positive throughout most of the day’s trading.

The FTSE 100 finished 0.71% lower at 10,524.76 points at the close.

Andy Burnham is expected to host US president Donald Trump in Manchester next year for the G20, according to The Times’ Washington editor.

It is understood that the choice of the north-west city as the location of the summit will have already been confirmed by the outgoing Keir Starmer.

Katy Balls wrote on X: Donald Trump expected to meet Andy Burnham in his beloved Manchester next year for the G20.

Understand the new prime minister’s invitation by phone for the US president to visit referenced the 2027 summit which @thetimes can reveal is expected to take place in Manchester.

It is especially interesting given that president Trump recently dismissed Manchester, the UK’s third-largest city, as a “town” when asked about Burnham’s imminent appointment.

Liz Kendall, the secretary of state for science, innovation and technology, has departed government as Andy Burnham continues his cabinet reshuffle.

In a post on X, she said she wishes her successor “the very best for the future” and that she believes Burnham will “take the country from strength-to-strength”.

She wrote: “At both the Department of Work and Pensions and the Department of Science, Innovation and Technology I have had the chance to change lives for the better, delivering greater equality and expanding opportunity to build a better future for all.” She said she had been “proud to stand up to Elon Musk and Grok, ban nudification apps and help make the online world safer for women and girls”.

Kendall references artificial intelligence (AI) in her letter and it has been reported that there may well be a minister for AI within Burnham’s cabinet.

After his speech, Andy Burnham told reporters gathered in the Downing Street garden he was looking at cutting energy bills and bus fares as part of a fully funded cost-of-living support package which could eventually include more radical plans such as freezing private sector rents.

“We are looking at measures that could make a difference this year… We just want to do some things that people will feel and feel quite quickly,” he said.

“It won’t solve everything, it won’t take all of the pressure off, but it just shows the direction of travel and that we’re serious about helping them out.” Burnham added that he would look at “any flexibility” within the government’s existing fiscal rules to help borrow billions more to invest in infrastructure – but insisted that he would take a “very prudent” approach to the economy.

“I’ve said we’ll stick to the fiscal rules and by that I mean the existing fiscal rules and use obviously any flexibility within them.

But we will stick to the existing rules,” he said.

“So none of this is about taking risks with the economy.

I’ve never done that in any role that I’ve had.

I’ve always taken a very prudent approach.” Burnham also suggested that he could cut income tax for lower earners in the budget.

This could involve raising the tax-free personal allowance, which has been frozen for the last five years and is currently set at £12,570 a year.

But the new prime minister refused to rule out bringing back the 50p top rate of tax – introduced by Gordon Brown’s government in 2010 – saying it was “premature” to make such decisions when he had just arrived at No 10. ”All of this will be looked at though at the budget, and obviously it’s difficult given the financial circumstances in which we find ourselves.

But I wanted to recognise the point because it’s challenging for people and it’s people on the lowest incomes perhaps who’ve most been affected by that,” he said.

“So it’s an issue that I’m just kind of showing I have a visibility of the issue and the impact it’s had on the different groups that I’ve mentioned, but it’s difficult because changing the threshold is not without significant consequences.

But I’m looking at it.” Keir Starmer’s attorney-general Richard Hermer has confirmed he is leaving the Cabinet, saying he will support Andy Burnham’s Labour government from the backbenches.

It is a departure that will come as no surprise, given Hermer’s closeness to the former prime minister.

He said in a post on BlueSky that it has been “the privilege of my life” to serve in the post for the last two years, adding he was especially proud of the Hillsborough Law and rebuilding the UK’s reputation abroad.

“I will continue to support this Labour government from the backbenches, as it delivers the change this country desperately needs.

“Andy and his team know they have my utmost support, and I wish them nothing but success.” Attorney General Richard Hermer leaves Downing Street after attending the first Cabinet meeting on July 06, 2024.

It has been speculated Reeves could have been demoted to a lesser role in cabinet.

But Sky News is reporting she declined another role.

The first ever female chancellor wrote on social media: 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.

Stability restored, investment delivered and reform to our economy under way.

I said when I was appointed Chancellor that I would judge my time in office if the lives ordinary working class people have been improved.

I’m proud to say that they have.

And to every young woman and girl let my time in office show there should be no ceilings on your ambitions, your hopes or your dreams.

I wish the very best of luck to my successor, Andy and his cabinet.

You have my full support, and I will continue to play my part in helping this Labour government deliver the change the country needs.

Rachel Reeves in Downing Street Peter Kyle has been sacked as business secretary, Sky News is reporting.

Chief whip Jonathan Reynolds, a former business secretary moved by Starmer, has been linked with a return to the role.

Watch this space.

David Lammy has announced he is also leaving government, having been the deputy prime minister since September 2025.

He too posted details of his departure on social media.

Writing on X, Lammy – who also served as justice secretary - said: It has been the greatest privilege of my life, coming from humble beginnings in Tottenham, to serve in government as @Keir_Starmer’s Foreign Secretary, Justice Secretary and Britain’s first Black Deputy Prime Minister.

I am immensely proud of what we achieved, in Opposition and in Government.

He added: I would have been proud to continue serving in Cabinet.

But a new Prime Minister is entitled to build his own team, and I wish @AndyBurnham and the new Cabinet every success.

I will continue to serve the great people of Tottenham, support this Labour government from the backbenches and do everything I can to help defeat Reform again at the next general election.

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