Andy Burnham has begun his tenure as prime minister by appointing Labour stalwart John Healey as chancellor, pledging to "bring back hope" and enact the "biggest changes in the last 40 years" to British politics. In his first speech as prime minister, delivered from Downing Street, Burnham outlined his intention to unveil a 10-year "new plan for Britain" later this year, which he stated would chart a course toward his vision for the nation's future. He also promised immediate measures this week to provide "breathing space now, some help with the cost of living," and detailed how these initiatives would be funded.

Burnham's initial cabinet appointments saw several key figures from the previous government depart. Rachel Reeves was removed as chancellor, David Lammy from his roles as deputy prime minister and justice secretary, and Steve Reed as communities secretary. John Healey, who had previously resigned from Keir Starmer's government over defense spending disagreements, is now in the chancellor's office.

Healey acknowledged the fiscal challenges, particularly concerning defense spending commitments. He stated to broadcasters that he and Burnham would "work in lockstep to meet the fiscal rules with a buffer against uncertainty" and focus on making "life more affordable for working people right across the UK."

Further cabinet changes include Ed Miliband moving from energy secretary to become foreign secretary, succeeding Yvette Cooper, who has been appointed health secretary. Shabana Mahmood will remain as home secretary. Louise Haigh has been given the crucial role of first secretary of state, chancellor of the Duchy of Lancaster, and minister for the Cabinet Office, tasked with coordinating government efforts. Angela Rayner returns to a cabinet position as housing secretary.

Wes Streeting, formerly the health secretary, is the new defense secretary. The Conservative Party leader, Kemi Badenoch, offered a cautious welcome to Burnham, stating that he "has not set out a clear plan for government" and criticizing his vow to reverse policies of Margaret Thatcher. She asserted that Britain requires a leader capable of making difficult decisions, rather than a "people pleaser."