Andy Burnham has announced a fresh tax cut to remove VAT from domestic electricity bills from 1 October, the first in what is expected to be a series of policy announcements on Tuesday morning.
Chancellor John Healey said the cut would be funded from cancelling the Digital ID programme. “For too long, too many people have struggled with the cost of living,” he said. “Today’s energy tax cut will give families some breathing room on bills, and provide some reassurance this winter.”
Mr Burnham was still appointing his cabinet late into Monday night, with Angela Rayner returning to government as housing secretary, Healey named as chancellor and Wes Streeting appointed as defence secretary.
Ed Miliband secured a place as foreign secretary and Shabana Mahmood is remaining as home secretary.
Louise Haigh, who managed Mr Burnham’s Makerfield campaign, has been rewarded for her loyalty with a job at the heart of government as first secretary of state and chancellor of the Duchy of Lancaster.
Chancellor Rachel Reeves, deputy prime minister David Lammy and housing secretary Steve Reed, all allies of Sir Keir Starmer, were sacked by the former mayor of Greater Manchester and have returned to the backbenches.
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Key Points
- Burnham cuts VAT on electricity bills in first major policy announcement
- The full list of Cabinet positions
- Trump breaks silence on 'interesting' conversation with Andy Burnham
- Who are the key winners and losers of Andy Burnham’s reshuffle so far?
- Angela Eagle and Miatta Fahnbulleh given top roles in cabinet
- Wes Streeting to be defence secretary
Burnham cuts VAT on electricity bills in first major policy announcement
06:32 , Adam WithnallChancellor John Healey said the cut would be funded from cancelling the Digital ID programme.
“For too long, too many people have struggled with the cost of living,” he said. “Today’s energy tax cut will give families some breathing room on bills, and provide some reassurance this winter.”
The new premier promised to provide early relief for households struggling with the cost of living as he stood on the steps of No 10 on Monday, pledging to set out the details today.
Andy Burnham announces fresh tax cut on electricity bills
Analysis: Burnham’s shock pick for chancellor signals a true government overhaul
06:00 , Bryony Gooch
Burnham’s shock pick for chancellor signals a true government overhaul
Watch: Political Correspondent Millie Cooke reports from Downing Street after Burnham delivers first speech
05:00 , Bryony GoochWho are the key winners and losers of Andy Burnham’s reshuffle so far?
04:35 , Bryony GoochAndrew Burnham - who took over as prime minister promising a “circuit breaker” for British politics - has started in post with a bang. The new PM conducted a brutal purge of Starmer loyalists, sacking more than nine ministers who had close ties with his predecessor. David Lammy, Darren Jones, Rachel Reeves and Peter Kyle all left the government, while others - including John Healey - had shock promotions.
Here, The Independent looks at the key winners and losers of today’s brutal reshuffle so far.
Who are the key winners and losers of Andy Burnham’s reshuffle so far?
Watch: John Healey appointed Chancellor of the Exchequer by Andy Burnham
03:15 , Bryony GoochWhat Burnham’s main policy pledges mean for you
02:20 , Bryony GoochAndy Burnham has made his inaugural speech as prime minister, giving the nation more detail on his plans and vision for his time in office.
The former Greater Manchester mayor ran uncontested for the position after securing the backing of 349 Labour MPs, making it impossible for anyone to stand against him.
He became Labour leader on Friday, and met with King Charles today to form a government after Sir Keir Starmer formally resigned.
Read more here:
Andy Burnham’s main policy pledges – and what they mean for you
The full list of Cabinet positions:
01:10 , Bryony Gooch- Rt Hon John Healey MP as chancellor of the exchequer
- Rt Hon Ed Miliband MP as foreign secretary
- Rt Hon Louise Haigh MP as first secretary of State, chancellor of the Duchy of Lancaster, and minister for the cabinet office
- Rt Hon Shabana Mahmood MP home secretary
- Rt Hon Yvette Cooper MP as health and social care secretart
- Rt Hon Pat McFadden MP will work and pensions secretarty
- Rt Hon Angela Rayner MP will return as secretary for communities, housing and local government (MHCLG)
- Rt Hon Jonathan Reynolds MP as secretary of state for business, inovation, science and trade
- Rt Hon Lucy Powell MP as education secretary
- Anneliese Midgley MP as chief whip
- Rt Hon Bridget Phillipson MP will remain minister for women and equalities
- Rt Hon Lisa Nandy MP will remain secretary of state for digital, culture, media and sport (DCMS)
- Rt Hon Wes Streeting MP as defence secretary
- Alex Norris MP as lord chancellor and secretary of state for justice
- Dame Angela Eagle DBE MP as secretary of state for environment, food and rural affairs
- Miatta Fahnbulleh MP as secretary of state for energy security and net zero
- Stephen Kinnock MP as secretary of state for Wales.
- Sir Chris Bryant MP as secretary of state for Northern Ireland.
- Rt Hon Ellie Reeves KC MP as attorney general
- Rt Hon Emma Reynolds MP as chief secretary to the treasury
- Kanishka Narayan MP as minister of state (minister for Artificial Intelligence) jointly in the cabinet office and DCMS.
- Hamish Falconer MP as minister for intergovernmental relations and European relations
- Rt Hon Heidi Alexander MP will remain as transport secretary
- Rt Hon Douglas Alexander MP will remain as secretary of state for Scotland.
- Rt Hon Sir Alan Campbell MP will remain as lord president of the Council and leader of the House of Commons.
- Rt Hon Baroness Smith of Basildon will remain as lord privy seal and leader of the House of Lords.
- Matthew Pennycook MP will remain as minister of state in the MHCLG.
Watch: David Maddox on Andy Burnham's new cabinet
Tuesday 21 July 2026 00:30 , Bryony GoochJobs announced for Alan Campbell, Matthew Pennycook and more
Monday 20 July 2026 23:33 , Bryony GoochEmma Reynolds has been appointed as chief secretary to the Treasury, while Baroness Smith will remain as lord privy seal and leader of the house of lords.
Alan Campbell will meanwhile remain as Lord president of the council and leader of the house of commons.
Matthew Pennycook will remain as minister of state in the ministry of housing, local communities and government. He will attend cabinet.
Trump breaks silence on 'interesting' conversation with Andy Burnham
Monday 20 July 2026 23:30 , Bryony GoochDonald Trump has spoken out following a phone call with new prime minister Andy Burnham.
The US president said on Truth Social: “I had a very good conversation with the new Prime Minister of the United Kingdom, Andy Burnham.
:We discussed many subjects, including the outstanding relationship we have had with the UK. We will be meeting in the not too distant future for topics of mutual interest.
“The Prime Minister has got a big job ahead of him, but he will be able to do it and, of course, the U.S.A. will be there to help!
“We discussed North Sea Oil, Trade, the Military Alliance, Demining of the Hormuz Strait, and many other topics. The call was interesting, and went very well. I wished Prime Minister Burnham, GOOD LUCK AND GODSPEED! President DONALD J. TRUMP”
Heidi Alexander to continue leading the department for transport
Monday 20 July 2026 23:15 , Bryony GoochHeidi Alexander will remain as transport secretary.
Heidi Alexander has been reappointed as Secretary of State for Transport @transportgovuk. pic.twitter.com/ltzSBhUO4X
— UK Prime Minister (@10DowningStreet) July 20, 2026
AI minister officially announced
Monday 20 July 2026 23:15 , Bryony GoochKanishka Narayan, formerly online safety minister, will be minister for AI as part of the department of culture, minister and sport.
Roles announced for Chris Bryant, Ellie Reeves, Stephen Kinnock and more
Monday 20 July 2026 23:14 , Bryony GoochChris Bryant will be the secretary of state for Northern Ireland, while Stephen Kinnock will take the role on for Wales.
Ellie Reeves, formerly solicitor general, will be the attorney general, taking over from Lord Hermer.
Hamish Falconer will be minister for intergovernmental relations and European relations.
Douglas Alexander will remain secretary for Scotland.
Chris Bryant has been appointed as Secretary of State for Northern Ireland @niogov. pic.twitter.com/cen919O9BR
— UK Prime Minister (@10DowningStreet) July 20, 2026
Angela Eagle and Miatta Fahnbulleh given top roles in cabinet
Monday 20 July 2026 22:57 , Bryony GoochAngela Eagle will be secretary of state for environment, food and rural affairs.
Miatta Fahnbulleh has been appoitned secretary of state for energy security and net zero, taking over from Ed Miliband.
Angela Eagle has been appointed as Secretary of State for Environment, Food and Rural Affairs @defragovuk. pic.twitter.com/CHbpQMWQa8
— UK Prime Minister (@10DowningStreet) July 20, 2026
Alex Norris to be justice secretary
Monday 20 July 2026 22:55 , Bryony GoochAlex Norris has been appointed as lord chancellor and secretary of state for justice.
He replaces David Lammy in the role.
Alex Norris has been appointed as Lord Chancellor and Secretary of State for Justice @mojgovuk. pic.twitter.com/5VsCDPYq97
— UK Prime Minister (@10DowningStreet) July 20, 2026
BREAKING: Wes Streeting to be defence secretary
Monday 20 July 2026 22:54 , Bryony GoochWes Streeting will be defence secretary, it’s just come in.
Downing Street announced the former health secretary will take the top job at the Ministry of Defence.
Wes Streeting has been appointed as Secretary of State for Defence @defencehq. pic.twitter.com/ROUXNhmimw
— UK Prime Minister (@10DowningStreet) July 20, 2026
