Andy Burnham promised the biggest change to British politics in 40 years as he became Prime Minister, making John Healey his Chancellor and sweeping away key figures from Sir Keir Starmer’s government.
The new Prime Minister promised to provide early “breathing space” for households struggling with the cost of living, vowed to end rough sleeping and set out a goal of “reindustrialising Britain”.
Speaking outside the door to No 10 Mr Burnham said he would deliver “a new political model and a new economic model” for Britain.
Former defence secretary Mr Healey, who quit Sir Keir’s government in a row over funding for the military, was the first new appointment announced by Mr Burnham.
Ed Miliband, who had been widely rumoured to be the next chancellor, was appointed as Foreign Secretary.
Shabana Mahmood, another senior figure who had been speculated about as a potential chancellor, remains as Home Secretary.
Louise Haigh, a key ally of Mr Burnham who was instrumental in getting him into No 10, has been made First Secretary of State and Chancellor of the Duchy of Lancaster, giving her a role as a fixer across government.
Mr Healey replaced Rachel Reeves, who he clashed with over cash for the defence investment plan, as she left government after turning down another role.
A series of other major figures from the Starmer era were sacked.
Sir Keir’s deputy prime minister David Lammy, chief secretary Darren Jones, business secretary Peter Kyle, attorney general Lord Hermer, technology secretary Liz Kendall, Welsh secretary Jo Stevens, Northern Ireland secretary Hilary Benn, paymaster general Nick Thomas-Symonds and development minister Baroness Chapman all lost their jobs.
Starmer loyalist Steve Reed, who lost his Cabinet role at the housing ministry, told Mr Burnham: “I hope those who did not show loyalty to Keir will now show it to you.”
Jonathan Reynolds’ appointment as Business Secretary with a beefed-up portfolio that included science and innovation, and Lisa Nandy remaining as Culture Secretary with new responsibility for digital, meanwhile suggested that the Department for Science, Innovation and Technology (DSIT) had been scrapped.
Wes Streeting returned to Government as the new Defence Secretary in a late-night appointment, while Miatta Fahnbulleh – a member of Mr Burnham’s inner circle – was made Energy Secretary.
In his first speech as Prime Minister, Mr Burnham – whose return to Westminster triggered Sir Keir’s resignation – acknowledged the turbulence in British politics which meant he was the seventh prime minister since 2016.
It was, he said, a time for “reflection and new resolution” and “Britain needs to show the world that we can regain our stability once again”.
He acknowledged a disaffection among Britons with politics in general.
“I know people at home are fed up with politics. I hear you and I want to be honest with you – we have not been good enough, and we need to be better. We will be.
“We will make this moment a circuit breaker for Britain, bringing forward the biggest changes in the last 40 years – a new political model and a new economic model.”
He suggested that would mean putting “life’s essentials back under stronger public control to make them affordable” and using public spending to back British businesses.
Mr Burnham said he would set out a 10-year plan later this year but promised more immediate help to deal with squeezed household finances.
“I can do something to give people some breathing space now, some help with the cost of living, and I will set out some of those measures starting tomorrow, including how we pay for them,” he said.
Mr Burnham later told reporters he was looking at measures including rent freezes, caps on bus fares and help with energy bills although no final decisions have been made.
The new Prime Minister also promised to:
– Help more young people into work by changing the education system and giving them more support
– Build more council homes
– Create a more “preventative state”, investing in people’s success rather than paying for failure.
He said: “That is the fair and sustainable way to bring the welfare bill down, to meet our fiscal rules, and to honour our commitments on defence to our international partners.”
Mr Burnham’s ability to move is constrained by his commitment to follow the rules on spending and borrowing set out by Ms Reeves while she was chancellor and his promise to stick to Labour’s manifesto commitment not to hike personal taxes for workers.
He told reporters he would use “any flexibility” he could find within the existing rules but “none of this is about taking risks with the economy”.
The decision to appoint Mr Healey, rather than the potentially more radical Mr Miliband, as Chancellor is an indication of Mr Burnham’s intention to calm the markets.
Mr Burnham said his approach was about putting the “right values and the right standards” at the heart of government.
“I will put the care of people at the heart of everything I do,” he said, urging Britons to “pull with me” to “build a new national sense of unity”.
His first call as Prime Minister was with Donald Trump and Downing Street said he told the US president he hoped to show him “what Manchester had to offer during a visit in the future” amid speculation next year’s G20 summit could be held in the North West.
Mr Burnham swept into Downing Street after being asked to form a government by the King following Sir Keir’s resignation.
In his final speech as prime minister Sir Keir praised the “greatness of Britain”, and said: “I go with good grace, I go with a smile, and I go proud of everything that we have achieved.”
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