Cabinet bloodbath! Burnham swings the axe on Starmer's top team Andy Burnham has launched a dramatic Cabinet purge on his first day as Prime Minister, sacking a string of Sir Keir Starmer's closest allies as he stamps his authority on the Labour government. Rachel Reeves was among the biggest casualties, losing the Treasury after reportedly refusing an alternative Cabinet post, while David Lammy, Steve Reed, Peter Kyle, Liz Kendall and Attorney General Lord Hermer were also shown the door. Reeves pays the priceReeves confirmed her departure after failing to retain the Chancellorship. In a farewell statement, she said she hoped her time in office had shown young women there was "no ceiling" on what they could achieve. Her exit leaves one of the biggest jobs in government vacant, with all eyes now on who Burnham chooses to oversee Britain's fragile economy. Chancellor suspense rattles marketsSpeculation is intensifying over whether Burnham will hand the Treasury to Ed Miliband or opt for the more market-friendly Shabana Mahmood. The uncertainty appeared to unsettle investors. During the day: Thirty-year government borrowing costs edged higher. Sterling weakened against the US dollar. Financial markets watched nervously for Burnham's next move. Business leaders have expressed concern about Miliband's interventionist economic views, while Mahmood is seen as a steadier choice by many in the City. Starmer loyalists swept asideThe clear-out signals Burnham's determination to distance himself from the Starmer era. Among those leaving government: Rachel Reeves David Lammy Steve Reed Peter Kyle Liz Kendall Lord Hermer Outgoing ministers made little attempt to hide their disappointment. Steve Reed said he hoped those who had not shown loyalty to Starmer would now support Burnham. David Lammy said he would have been proud to continue serving in Cabinet. Burnham promises radical changeIn his first Downing Street speech, Burnham admitted Labour "needs to be better" and pledged the biggest political transformation in 40 years. He argued Britain had taken "wrong turns" during the Thatcher years and promised to reverse decades of centralisation and privatisation. Among his priorities are: Stronger public control of key services. A ten-year programme of reindustrialisation. Greater powers for local communities. More affordable housing. Action to reduce the cost of living. Help coming 'within days'Burnham said households would soon receive "more breathing room" as ministers finalise measures aimed at easing financial pressure. He indicated the Government is considering: Rent controls. Lower energy bills. Cheaper bus fares. Earlier tax threshold changes. He stressed that no final decisions had yet been taken. Death tax returns?The Prime Minister also suggested social care reform could be funded through changes to inheritance tax, reviving accusations from critics that Labour is preparing a new "death tax." He also declined to rule out introducing a new 50p top rate of income tax despite Labour's election manifesto ruling out the move. A new era beginsBurnham's first hours in office have been marked by sweeping personnel changes, ambitious promises and immediate political controversy. Supporters see a leader determined to reshape Labour and redefine Britain's economic direction. Critics argue the new Prime Minister has begun his premiership with a ruthless purge, unanswered questions over tax and spending, and a growing sense of uncertainty in financial markets. One thing is already clear: Burnham's Downing Street is determined to look very different from Starmer's. SOURCE
Create an account or sign in to comment