As Andy Burnham settles into his first full day as Prime Minister, he's sending a clear signal that this is a new era in British politics. A series of high-profile cabinet appointments and promises to tackle the cost of living crisis have sparked widespread interest in Westminster. The most talked-about move is John Healey's appointment as Chancellor of the Exchequer, a decision that has raised eyebrows given the strong competition for the post.
The reshuffle that accompanied Healey's appointment has been marked by a significant cull of ministers closely aligned with former Prime Minister Sir Keir Starmer. Prominent figures such as David Lammy, Darren Jones, Peter Kyle, Lord Hermer, and Steve Reed have lost their government roles. Rachel Reeves, another key Starmer ally, was offered a cabinet position but declined it. This deliberate move by Burnham suggests he's determined to establish his own mandate and direction for the government.
Healey brings relevant experience to the role, having served as Economic Secretary and then Financial Secretary between 2002 and 2007. However, his recent criticisms of the Treasury's approach and his advocacy for increased defence spending—aiming for 3% of GDP by 2030—present a fascinating dynamic. He previously described the 'Treasury orthodoxy' as a 'dead hand on dynamic government', viewing defence as a 'driver of growth' rather than a 'drain'. Now, he'll need to reconcile these views with the fiscal realities of his new office.
Prime Minister Burnham has wasted no time in outlining his policy priorities, including cutting VAT on household electricity bills from 1 October. Other ambitious proposals include a new council house building programme in England, raising the income tax threshold, and an overhaul of social care in England. These initiatives aim to provide 'breathing space' for citizens struggling with the cost of living, but come with substantial price tags, placing immediate pressure on Chancellor Healey to 'make those numbers add up'. The new cabinet convened for the first time at lunchtime today, with the appointments process extending late into Monday night.
Among the other key appointments, Wes Streeting has taken on the role of Defence Secretary, just two months after his resignation as Health Secretary contributed to Sir Keir Starmer's erosion of authority. The coming days are expected to see a flurry of announcements and arguments from the new Prime Minister and his senior ministers as they seek to make an immediate impact and define the trajectory of the new government.