Prime Minister Andy Burnham has begun life in Downing Street after unveiling a significantly reshaped Cabinet, promising to “rewire Britain” by shifting power away from Westminster.
He is aiming to focus on economic growth, public services and tackling the cost of living.
Burnham formally became Prime Minister on Monday after being invited by King Charles III to form a government following Sir Keir Starmer’s resignation.
The new PM used his first Cabinet appointments to promote a number of experienced Labour figures while removing several allies of his predecessor.
John Healey has been appointed Chancellor of the Exchequer, while Ed Miliband becomes Foreign Secretary. Wes Streeting takes over as Defence Secretary, with Yvette Cooper moving to Health Secretary. Shabana Mahmood remains Home Secretary, Jonathan Reynolds continues as Business Secretary, Angela Rayner is Housing Secretary, Louise Haigh has been appointed First Secretary of State and Chancellor of the Duchy of Lancaster, Alex Norris becomes Justice Secretary, and Miatta Fahnbulleh takes over as Energy Secretary.
Speaking outside No. 10 Downing Street, Burnham pledged to deliver “a government that works for every part of the United Kingdom”, placing regional growth, affordable housing and an end to rough sleeping at the centre of his programme.
He also confirmed that ministers would begin work immediately on a package of measures designed to ease pressure on household finances and set out plans for a long-term national strategy later this year.
The Cabinet reshuffle marks one of the biggest changes in Labour’s frontbench since entering government, with former Chancellor Rachel Reeves and former Foreign Secretary David Lammy among those leaving.
In response to the new appointments, Dr Tony Syme, macroeconomist at the University of Salford said: “Andy Burnham has promised the British people “breathing room” on the cost of living and there are good reasons to believe he means it. As Mayor of Greater Manchester, he delivered tangible improvements to household budgets, bringing buses back under public control and capping single fares at £2. It was practical economics, focused on the everyday costs that matter to working families, and it worked.
“Today he committed to applying that approach nationally, pledging to put “life’s essentials” under public control and to reindustrialise Britain. Whole regions of Britain never recovered from the deindustrialisation of the 1980s. That is his diagnosis, and public control is his remedy.
“His argument is that public control of essential services lowers long-term costs to the state and to households. Water, energy and transport are precisely where families feel the cost of living squeeze, so this approach targets the right places. Thames Water, carrying £20 billion of debt, offers him a ready-made first test case, and one he is well placed to take on.
“The details of his cost of living plans are due and the early signals are encouraging. Scrapping the digital ID programme to redirect money towards household budgets, and his acknowledgement that frozen tax thresholds have quietly eroded take-home pay, suggest a government focused on tangible improvements in people’s lives.”
Keith Griffiths, founder and CEO of The Entrepreneur Festival, said that too many talented founders are building ambitious companies, but struggling to access capital, scale their businesses or tap into the networks they need to grow.
He said: “A new government has an opportunity to change that by treating entrepreneurs as partners in economic policy rather than simply beneficiaries of it. If Andy Burnham wants to raise productivity, create jobs and strengthen regional economies, backing entrepreneurs should be one of his priorities.”
Dominic Pozzoni, Head of Colliers’ Manchester office, said: “Looking back over the past three decades, what stands out most is not the achievement of any single leader, but the collective effort and ambition of countless individuals and organisations. Andy Burnham has been an important chapter in that story, but the city’s success belongs to a much wider group of people who have worked together to make Manchester the place it is today.
As Andy now takes on the role of Prime Minister, I hope he can build on those experiences and apply the same principles that have underpinned Manchester’s success: long-term vision, collaboration between the public and private sectors, devolved decision-making and attracting investment that creates opportunities for communities and businesses alike. If those lessons can be replicated across the UK, there is every reason to be positive about the country’s future.”
