Andy Burnham Unveils Cabinet as He Vows to Restore Hope

Andy Burnham said his return to No 10 would “bring back hope” as he launched his premiership by naming John Healey as chancellor and setting out plans to help repair damage to communities, particularly those affected by the Thatcher era.

Speaking outside Downing Street after taking over from Keir Starmer, Burnham said people were “fed up” with politics and that the government needed to “do better” in delivering change. He made the comments as he faced the immediate challenge of governing within existing fiscal constraints while promising a stronger programme for public services and investment.

Cost of living package and borrowing rules

Burnham told the country that the government would offer “breathing space” on Tuesday, with a package aimed at reducing costs for households. Plans expected to include cuts to energy bills and bus fares were described as fully funded.

Later, he said he would look at “any flexibility” within the government’s fiscal rules to allow borrowing of billions more for infrastructure. He added that he would take a “very prudent” approach to the economy, in comments that were followed by a fall in UK 10-year gilt prices.

Markets moved lower after his remarks, reflecting concerns about the risks associated with higher borrowing and increased debt, although they had closed by the time Healey was announced.

Cabinet reshuffle and senior appointments

Healey, a former defence secretary, was chosen as a compromise candidate after Ed Miliband and Shabana Mahmood were also described as potential contenders for the post. Miliband was confirmed as foreign secretary, while Mahmood remained at the Home Office.

Burnham’s arrival marked the UK’s sixth prime minister in a decade, following Labour MPs who removed Starmer from office. He used Monday evening to finalise cabinet appointments after sacking a number of senior figures described as Starmer loyalists, including chancellor Rachel Reeves and deputy prime minister David Lammy.

Louise Haigh was named first secretary of state and chancellor of the duchy of Lancaster, overseeing an expanded Cabinet Office described as the “political engine room” for Burnham’s agenda.

Yvette Cooper moved from the Foreign Office to the Department of Health, where she will oversee plans to transform social care. Pat McFadden remained at the Department for Work and Pensions.

Burnham, who had taken over as Labour leader on Friday, acknowledged that his ability to change the economic framework before the next election may be limited by the government’s commitment to fiscal rules.

Calls to Trump and European leaders

In his first call with a world leader, Burnham spoke to Donald Trump. Trump had previously suggested Burnham was only mayor of a “town”, but Burnham invited him to Manchester for next year’s G20 summit.

He also spoke to Ukraine’s Volodymyr Zelenskyy and European Union chief Ursula von der Leyen.

Addressing the public without notes and with his wife, Marie-France van Heel, watching, Burnham said his role came at a moment of reflection for politicians and that the country needed to regain stability. He told the crowd: “Let’s build a new national sense of unity, of common purpose, and positivity,” and said the government’s goal was to make the start of his premiership “the moment we bring back hope.”

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21 July 2026