New United Kingdom Prime Minister Andy Burnham convened his Cabinet for its inaugural meeting Tuesday, signaling a "one-team approach" while simultaneously removing allies of his predecessor, Keir Starmer, from government positions.
Burnham declared his administration would be a "cost-of-living government," prioritizing measures to alleviate the economic pressures faced by citizens. "We need to think every day, what can we do just to take that little bit of pressure off people’s shoulders, to give them that little extra sense that help is coming, so they can have that bit of hope that things are getting better," Burnham stated.
As an initial step, Burnham announced a reduction in domestic electricity bills, projected to save the average household approximately 45 pounds ($60) annually. This tax cut, effective October 1, will be funded by canceling a proposed digital ID card initiative introduced under Starmer's leadership.
The former mayor of Greater Manchester assumed the premiership on Monday, succeeding Starmer as leader of the Labour Party. Starmer resigned after two years in office, following a landslide election victory, amidst party dissatisfaction over policy shifts and perceived missteps.
In his initial address as prime minister, Burnham outlined a platform aimed at easing the cost of living, devolving political authority, stimulating industrial growth, and addressing homelessness. He acknowledged that the government would face significant financial constraints, necessitating a thorough review of priorities.
Following his assumption of office, Burnham initiated a government reshuffling. Rachel Reeves, Starmer's former finance minister, was replaced by John Healey. Healey, previously a defense secretary, had resigned in June, criticizing the Treasury for insufficient military spending. He once described the Treasury as "a dead hand on dynamic government" and "in denial."
Healey has advocated for increasing defense spending from the planned 2.6% of GDP next year to 3% by 2030, a goal he will now be tasked with facilitating. Wes Streeting, whose resignation as health secretary in May contributed to Starmer's downfall, has been appointed to lead the defense portfolio.
Other notable Cabinet appointments include Ed Miliband as Foreign Secretary, Angela Rayner as Housing Secretary, and Jonathan Reynolds as Business Secretary, with an expanded remit encompassing innovation and science. Louise Haigh, a key ally of Burnham, was named First Secretary of State and Chancellor of the Duchy of Lancaster, effectively serving as deputy prime minister. Shabana Mahmood retained her position as Home Secretary, having previously managed policies aimed at reducing immigration.
While Burnham commands considerable support within the party, which is reportedly seeking a renewed direction, his decision to dismiss several senior Starmer ministers, including former Deputy Prime Minister David Lammy and former Business Secretary Peter Kyle, has generated some internal dissent.
Burnham's administration faces a complex foreign policy landscape, marked by conflicts in Ukraine and the Middle East, and the management of relations with U.S. President Donald Trump. Burnham's office reported an "extremely warm" conversation with Trump, emphasizing a commitment to defense and security. Trump indicated on social media that a meeting would occur in the near future.
The prime minister has also engaged in calls with Ukrainian President Volodymyr Zelenskyy, French President Emmanuel Macron, German Chancellor Friedrich Merz, and leaders from the European Union and NATO. Burnham informed NATO Secretary-General Mark Rutte that appointing Healey as finance minister was a deliberate signal of his intentions.
In a demonstration of ongoing international tensions, a Russian warship conducted a live-fire weapons exercise in the English Channel on Monday, the same day Burnham took office. The Ministry of Defense confirmed the vessel was monitored by the Royal Navy and stated its readiness to protect national security. Streeting, the new defense secretary, characterized the Russian ship's actions as "performative and irresponsible," asserting the government's resolve against Russian aggression.
Kremlin spokesperson Dmitry Peskov stated that Russian warships operate in accordance with international law and expressed "no such hopes" for improved relations with the U.K. under the new prime minister.