Prime Minister Andy Burnham has initiated a significant shake-up of government, removing key allies of his predecessor, Keir Starmer, and signaling a move towards a more left-wing political agenda. The changes, which occurred within hours of Burnham taking office, saw Rachel Reeves, David Lammy, and Lord Hermer among those dismissed from their Cabinet positions.
John Healey has been appointed as the new Chancellor, a decision that departs from speculation favoring Ed Miliband or Shabana Mahmood for the role. Angela Rayner has been reappointed as Housing Secretary. Burnham indicated his intention to address the cost of living crisis immediately, with proposals including energy bill cuts, a cap on bus fares, and potential rent controls. He stated that new measures would be fully funded, leading to concerns about potential tax increases, possibly on middle-income earners.
Burnham has described his agenda as introducing the "biggest changes in the last 40 years – a new political model and a new economic model." This approach has drawn criticism, with Kemi Badenoch accusing Labour of embarking on a "reckless experiment" and Nigel Farage calling for an immediate general election.
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. Shabana Mahmood will continue as Home Secretary.
Louise Haigh, formerly the transport secretary, has been appointed Chancellor of the Duchy of Lancaster, a significant role just 18 months after resigning from the Cabinet following a fraud conviction.
Burnham has stated his intention to reverse what he terms "wrong turns" taken under Margaret Thatcher and acknowledged his father's struggles with dementia as a motivator for a major social care shake-up. The new Prime Minister also indicated a willingness to exploit "flexibility" in Labour's fiscal rules, potentially leading to increased borrowing.
In a significant departure from recent trends, Burnham has extended an invitation to Donald Trump to visit Manchester for the G20 summit next year. The Prime Minister has also not ruled out reviving the 50 pence top tax rate, a policy previously excluded from Labour's manifesto. Burnham, however, has ruled out holding a general election, asserting his legitimacy to lead based on commanding a majority in the House of Commons.