Prime Minister Andy Burnham has initiated a significant reshuffling of his cabinet, removing allies of his predecessor Keir Starmer and appointing loyalists, in what is being described as a decisive lurch to the left.
Within hours of taking office, Burnham dismissed several key figures from Starmer's previous cabinet, including Rachel Reeves, David Lammy, and Lord Hermer. John Healey has been appointed as the new Chancellor, a move that defied expectations of Ed Miliband or Shabana Mahmood taking the position. Angela Rayner has been reappointed as Housing Secretary.
Burnham has vowed to implement the most significant political and economic changes in four decades. He indicated plans to address the cost of living crisis through measures such as reducing energy bills, capping bus fares at £2, and potentially introducing rent controls. These initiatives, he stated, would be fully funded, leading to concerns about potential tax increases, possibly affecting the middle classes. Burnham also opened the door to reviving the 50 pence top tax rate, a policy previously ruled out in the Labour manifesto.
The new Prime Minister, who officially took office after Keir Starmer's departure, has stated his intention to reverse what he described as the "wrong turns" taken under Margaret Thatcher. He plans to address social care needs, citing his father's dementia as a personal motivation. Burnham also suggested exploiting fiscal rule flexibility to increase borrowing.
Ed Miliband, who reportedly played a role in the move against Starmer, has been appointed Foreign Secretary. Wes Streeting is the new Defence Secretary, and Lisa Nandy remains Culture Secretary. Yvette Cooper has been moved to Health Secretary from the Foreign Office. Shabana Mahmood retains her role as Home Secretary.
Louise Haigh has been appointed Chancellor of the Duchy of Lancaster, a significant role she takes on approximately 18 months after leaving the Cabinet due to a fraud conviction.
Burnham has ruled out an immediate general election, despite taking office without a direct electoral mandate. He argued that commanding a majority in the House of Commons provides the legitimacy to lead. He is scheduled to unveil his ten-year vision in the autumn.
The political shift has drawn criticism. Kemi Badenoch accused the Labour party of embarking on a "reckless experiment." Nigel Farage called for an immediate election, deeming Burnham's ascension "deeply troubling."
On the international front, the appointment of Ed Miliband as Foreign Secretary has reportedly drawn a warning from the Trump administration.
Burnham has also extended an invitation to Donald Trump to visit Manchester for next year's G20 summit, following their first conversation.
