Rachel Reeves Sacked As Andy Burnham Axes Keir Starmer Loyalists In Brutal Reshuffle

Rachel Reeves has been sacked as chancellor as Andy Burnham axed a raft of Keir Starmer loyalists from cabinet.

In a brutal reshuffle, the new prime minister also dumped David Lammy, Peter Kyle, Steve Reed, Lord Hermer and Liz Kendall.

They are expected to make way for key Burnham supporters, including Louise Haigh.

It is understood that she was offered “a big job” by Burnham but turned it down.

Announcing her departure on X, Reeves said it had been “the privilege of my life to serve as the Chancellor of the Exchequer”.

She said: “The economy today is stronger, fairer and more resilient because of the choices we have taken as a Labour government over the past two years.

“Stability restored, investment delivered and reform to our economy under way. I said when I was appointed chancellor that I would judge my time in office if the lives ordinary working class people have been improved. I’m proud to say that they have.

“And to every young woman and girl let my time in office show there should be no ceilings on your ambitions, your hopes or your dreams.

“I wish the very best of luck to my successor, Andy and his cabinet. You have my full support, and I will continue to play my part in helping this Labour government deliver the change the country needs.”

Lammy, who was Keir Starmer’s deputy PM as well as justice secretary, said he “would have been proud to continue serving” in the cabinet, but had been sacked.

He said: “A new prime minister is entitled to build his own team, and I wish Andy Burnham and the new cabinet every success.”

Housing secretary Steve Reed, one of Starmer’s staunchest defenders, said he was “disappointed to be leaving government now”.

Kyle, who was business secretary, was another Starmer ally ousted as Burnham’s draws up his own top team.

Lord Hermer, who was Starmer’s attorney general, also said it had been “the privilege of my life to serve my country”.

“I will continue to support this Labour government from the backbenches, as it delivers the change this country desperately needs,” he said on Bluesky.

“Andy and his team know they have my utmost support and I wish them nothing but success.”

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Who Is In Andy Burnham’s Government – And Who Is Out?

Andy Burnham has started to announce his ministerial picks on his first official day as prime minister.

The new PM is looking to draw a line in the sand between Keir Starmer’s government and his own, and so will likely root out those most closely linked to his predecessor.

However he has said he wants to run a more “collaborative” type of politics, suggesting he would be happy to have a range of ideologies in his top team.

Here’s what we know so far.

Cabinet Dismissals

Rachel Reeves has been sacked as the chancellor, having been closely tied to Starmer’s government and helped him enact any major economic policies.

She wrote on X: “I wish the very best of luck to my successor, Andy and his cabinet. You have my full support, and I will continue to play my part in helping this Labour government deliver the change the country needs.”

She was reportedly offered a role in Burnham’s government but turned it down.

Steve Reed was dismissed as housing and communities secretary, too.

He was loyal to Starmer to the very end so it is unsurprising he added a brutal parting shot for the new administration in his resignation letter.

The Labour MP wrote: “Keir Starmer showed loyalty to me by appointing me to his Cabinet. I make no apology for returning that loyalty. It’s what is expected of functioning teams, and I hope those who did not show loyalty to Keir will now show it to you.”

David Lammy was also kicked out of government after serving as deputy prime minister, justice secretary and previously his foreign secretary.

The Starmer loyalist wrote on X: “I would have been proud to continue serving in cabinet. But a new prime minister is entitled to build his own team, and I wish Andy Burnham and the new cabinet every success.”

Peter Kyle was also sacked as business secretary while Liz Kendall was fired as the work and pensions secretary.

Attorney General Lord Hermer and close friend to Starmer was kicked out, too, though he said the incoming government will have “my utmost support”.

The new prime minister is yet to confirm who he wants in his cabinet.

Wider Government

James Timpson, who was appointed to the Lords to serve as prisons and probation minister back in 2024, announced he was “retiring” today.

He spent longer in the post than anyone else appointed to the ministerial position over the last 15 years.

Science minster Patrick Vallance – and the government’s chief scientific adviser during the pandemic – quit on Monday morning, citing “personal reasons”.

It comes amid speculation the science department could be disbanded under Burnham.

This is a breaking news story. Check back for updates or follow HuffPost UK on X at @HuffPostUK or on Facebook.

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Burnham Government To Scrap Starmer’s Plan For Digital ID Scheme

Andy Burnham’s government intends to scrap Keir Starmer’s plan to implement digital ID, a close ally to the incoming prime minister has confirmed.

Dropping the controversial scheme is part of Burnham’s bid to put his own stamp on government and distance himself from his predecessor’s most divisive policies.

Starmer announced plans for a digital ID scheme last September to crack down on illegal working, but it sparked fears about whether personal data might then be at risk.

Speaking to Laura Kuenssberg on the BBC, deputy Labour leader Lucy Powell said scrapping the programme move would allow ministers to be “laser focused on the cost of living, laser focused on rewiring the economy, rewiring the political system in this country, and clearing the decks, if you like, from of all of the other things that might distract and take away from that in terms of the focus of the government”.

Asked how much money would now be freed up for other means, Powell said: “The OBR said it would cost, I think, £1.8 billion over the over the coming years.

“That’s not an insignificant amount of money. That will obviously be re-prioritised and redistributed in different ways.

“But as I say, it’s not just about the money.

“It’s actually about the attention and the focus, so that the the whole of government machinery can work in service of the agenda and the vision that the Labour government is setting out under under Andy Burnham, and I think that is important.”

She also claimed Burnham will deliver on the Labour manifesto by being “bolder” and “clearer” about what the party stands for.

Powell confirmed there would be a “change of emphasis” on North Sea oil and gas drilling under Burnham as well.

There has been widespread speculation that the new prime minister might issue new drilling licences to boost the UK’s energy security, even though the 2024 Labour manifesto pledged not to.

Though she did not confirm what Burnham intends to do on the divisive topic, Powell said the new PM would take a “more pragmatic approach” towards North Sea drilling.

Powell said: “We’ve been really clear that the way to achieve, in the long term, energy security and lower bills is by ensuring that we do have our our own homegrown, clean, much cheaper energy.

“But we’ve been absolutely clear that North Sea gas and oil is an important part of that transition.

“It’s an important part of the mix, and I think what Andy’s talking about is taking a more pragmatic approach and working with the industry to make sure that it can contribute to that transition and to the the mix that is needed over the long term.

“So let’s see what he’s got to say about that. But I don’t think it’s a change of policy. It’s more a change of emphasis.”

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Liz Truss Breaks The Irony Metre By Predicting Andy Burnham Will Cause ‘Financial Crisis’

Liz Truss has predicted that Andy Burnham will lead Britain into a “financial crisis” in a moment which feels like pure satire.

The former Conservative prime minister famously planned to implement £45 billion of unfunded tax cuts which sent the pound into decline and the markets into turmoil.

The Bank of England even had to step in and buy £65 billion worth of government bonds to prevent disaster.

The chaos unleashed by her mini-Budget meant Tory MPs quickly pushed Truss out of office after just 49 days – making her the UK’s shortest-serving prime minister in history.

However, speaking at CPAC GB – a right-wing conference which is a spin-off of its American counterpart – Truss has predicted that the incoming PM Burnham would send the UK into “financial crisis”.

According to the Mirror, she said: “The money’s going to run out. I think the problems with migration are going to get worse and the general decay and stagnation of Britain is going to continue.

“I think the question is how long the pro-progressive authorities can continue.

“My prediction is that there will be another prime minister before 2029.”

Burnham was announced as the Labour leader on Friday and is set to become the next prime minister on Monday when Keir Starmer hands over the keys.

There is some trepidation about his plans for the economy amid fears he could push public spending hikes.

Truss’s words also come after the International Monetary Fund (IMF) warned Burnham this week that the UK is still struggling with the scars left behind by Truss’s mini-budget of 2022.

Four years on, and gilt markets are still nervous about the UK fiscal policy than previously, and according to the IMF, there has been a “regime change” on bond markets as a result.

Truss also told the conference: “We’ve had seven prime ministers in ten years.”

She added: “That’s the equivalent of a crap football team changing its manager all the time but not changing what happens on the pitch.”

It seems to have escaped her attention that five of those seven prime ministers have been Conservative – and she was one of them.

Truss also tried to call for right-wing figures to join her “counter-revolution” rather than going for jobs outside of politics.

“It’s time for successful people in Britain who actually care about the future of our country to step up. To stop being such cowards because at the moment they’re being cowards,” she said.

Truss lost her seat to the Labour Party at the 2024 general election.

According to the Mirror, barely a third of the 500-seat hall was occupied for her appearance at CPAC GB.

Burnham’s team has been approached for comment.

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‘We’re Going To Give Them Hope Back’: Andy Burnham Officially Becomes Labour Leader

Andy Burnham has officially been crowned as the leader of the Labour Party, meaning he is days away from being de facto prime minister.

The Makerfield MP will have to wait until Monday to formally take over from Keir Starmer in No.10, as a quirk in the rules means he could not take both titles on the same day.

Burnham ran uncontested to be the next leader of the largest party in the Commons with the support of more than 350 of Labour’s 403 MPs.

In his first speech as Labour leader, he promised he would help to give Brits “hope back”.

He said his supporters “heard the call from the people of Makerfield on behalf of forgotten places everywhere, up and down this country, for a return of the Labour they once knew”.

He added: “And now we answer that call. We will be that version of Labour again.”

Burnham, who has run three times to lead the party, promised he is “ready” to lead Labour now after his nine-year stint as Greater Manchester mayor.

He also praised Starmer for making the party electable after its shocking defeat in the 2019 general election.

He then began to outline what changes he wants to implement, promising: “Change starts with honesty.

“We must recognise that this generation of politicians, myself included, have failed to challenge a political culture and an economic model that simply doesn’t work well enough for ordinary people.

“Four decades of neoliberalism that began in the 1980s have not been kind to the places that built our party, nor to the communities across the UK in rural and coastal areas. So we pledge today to them to be better.”

He added that the public has given his party a “last chance” to implement change – and that he will take the country in a direction which is “distinctively Labour”.

Burnham made five promises to improve the party, too.

He said he would work to build a “new politics”, change Labour’s “political direction”, be a leader for the entirety of the UK, take power back from Westminster and Whitehall and work to stop Labour in-fighting.

Burnham has had a rapid ascent to Downing Street in recent months.

Support for the then-Greater Manchester mayor started to rise as Starmer’s successor after the party’s disastrous performance in the May elections in England, Scotland and Wales.

However, as he did not have a seat in the Commons, Burnham was not able to challenge Starmer’s premiership.

So Josh Simons, Makerfield MP, stood aside to trigger a by-election and give Burnham a chance to return to the Commons.

His comfortable victory over Reform UK last month only strengthened calls for Starmer to step down.

The prime minister subsequently resigned and Labour MPs rushed to endorse Burnham.

There is still plenty of mystery around what Burnham intends to do in office as he avoided any major press conferences and is yet to announce who he wants in his cabinet.

But he insisted today that he “has a plan” and that he will “not change”, staying loyal to his style.

“I have listened and learned as I have gone along, you’ll be pleased to know. And hopefully I’ve got better as a result,” Burnham said. “You can be sure of this: I know what I believe after 25 years as an elected Labour representative, and I know what I want to do with you all. I have a plan.

“What I also want you to know is I won’t change. I have a style and it’s my style. I will always stay close to the ground, close to the people.”

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Burnham Under Fire As Labour Blocks Vote To Force Him To Face Commons On First Day As PM

Andy Burnham has been slammed after Labour blocked a vote which could have forced him to face the Commons on his first day as prime minister.

The Makerfield MP is set to be crowned as the Labour leader on Friday having run unchallenged to be Keir Starmer’s replacement.

However, an MP cannot become party leader and prime minister on the same day – meaning Burnham will get the keys to No.10 on Monday, July 20.

MPs were already scheduled to start their six-week summer recess on Thursday, July 16, so the Commons will not be sitting on the new PM’s first day.

There is no constitutional rule calling for a prime minister to appear before MPs immediately after being appointed by the monarch.

The Conservatives wanted to use their pre-arranged opposition day debate on Wednesday to table a motion saying the Commons should delay recess so Burnham can address MPs next Monday as the new prime minister.

But the leader of the Commons, Labour’s Alan Campbell, announced on Tuesday there had been a change in parliamentary business.

Instead, MPs would have a general debate on the ongoing situation in Iran.

The Tories’ shadow leader of the Commons Jesse Norman said the public would conclude Burnham was “running scared of public scrutiny before he can even take office”.

“The government has a majority of more than 150 and it could not trust its MPs to vote the right way on that motion [delaying the recess], and it could not bear the idea of a new prime minister facing any scrutiny before September,” Norman said.

“A prime minister, let me remind us all, who has been chosen by a coronation not a contest, with no known platform, almost no known policies, and no idea of his priorities or indeed his cabinet team.”

Campbell dismissed Norman’s claim, insisting it was important for MPs to have a chance to debate what was happening in Iran.

He claimed he was unaware of the motion the Tories were going to table on Wednesday, insisting he was “telling the absolute truth” at the despatch box.

The Commons leader also accused the Tories of playing games, saying: “People listening to this… will do so with a degree of incredulity that [the Conservative party] was preferring to go down a route of playing some weird political game while the Middle East is on the brink of conflagration.”

Tory leader Kemi Badenoch wrote on X: In an unprecedented move, Labour have scrapped the Conservative vote to force Andy Burnham to come to Parliament to answer questions when he becomes PM on Monday.

“Labour are running scared because they know the honeymoon will be over the minute he has to tell us his plans.”

Burnham has already faced significant backlash for dodging scrutiny on his hurried journey to No.10.

Since winning the Makerfield by-election last month, he has avoided making any statements in the House of Commons and has not held any press conferences.

There is plenty of mystery around what he plans to do as prime minister, especially since he did not have to have any debates with leadership rivals also vying for Starmer’s role.

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JD Vance Says ‘Something Is Very Broken In British Politics’ In Swipe At Starmer

JD Vance has declared “something is very broken in British politics” as the UK prepares for its seventh prime minister in just over a decade.

The American vice-president said Britain “can do a lot more than it’s currently doing” to help its voters in a dig at the current prime minister.

Speaking two weeks before Keir Starmer is expected to hand the keys of No.10 over to Andy Burnham, Vance expressed alarm about the high turnover in Downing Street.

He said: “What that says to me is that something is very broken about British politics and that people are really crying out for significant structural change.”

He claimed he did not know much about the former Manchester mayor but added that the UK is “one of our closest and most important allies” and that the US administration would work with any new leader “as successfully as we can.”

Vance continued: “I hope that Andy Burnham – and if not Andy Burnham, somebody else – is able to deliver [change]. Because Britain is such a beautiful country, such an amazing place.”

Speaking on the 250th year of US independence, Vance claimed he is interested in the UK because of “reasons of mutual interest” and expressed hope that “whoever the prime minister is figures out how to get Britain back on track”.

“I also just care about it because Britain feels more culturally familiar to me than any country on Earth, aside from my own,” Vance said.

His words come after Donald Trump was significantly less diplomatic about Burnham.

The US president described him as an “extremely liberal” politician who “probably won’t open up” the North Sea for further oil and gas drilling.

He also called the former Greater Manchester mayor as “the mayor of a town”.

Burnham is yet to say what his approach to the mercurial president would be.

Starmer bent over backwards to forge a strong bond with Trump and even gave him an unprecedented second state visit to the UK.

However the two fell out after the prime minister refused to let the US use UK military bases to launch attacks on Tehran earlier this year.

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Andy Burnham Has Been Tipped To Bring Another New Labour Big Beast Into Government

Andy Burnham has been tipped to bring back another senior figure from the New Labour era in his new-look government.

The former mayor of Manchester – who served as a minister under both Tony Blair and Gordon Brown – will officially take over as prime minister from Keir Starmer on July 20.

It has already emerged that his close friend James Purnell, who also served in cabinet during Labour’s last time in power, will be the new No.10 chief of staff.

David Miliband, another New Labour figure, could also be given a seat in the House of Lords in order to become foreign secretary.

Meanwhile, the i newspaper reported that Ed Balls could also be handed a peerage and given a role in Burnham’s government.

HuffPost UK has learned that another New Labour big beast who could make a dramatic comeback is Alan Milburn.

The former health secretary has held talks with Burnham about his review into record levels of unemployment among 18 to 24-year-olds.

In a speech last week, the PM-in-waiting said he wanted to introduce major education reforms which would place greater emphasis on technical qualifications rather than forcing pupils to study at university.

One minister said: “I can see Alan being brought into Andy’s government. He seems to like what Milburn has been saying about getting young people into work.”

Another source said: “Andy keeps referencing Milburn in his speeches, and Alan is clearly up for it.

“It would make sense to allow Alan to drive through his own reforms on youth unemployment as a minister.”

Asked whether Milburn could be handed a role once Burnham becomes prime minister, a source close to the new Makerfield MP insisted he had offered “no jobs and no deals”.

Milburn, who was the MP for Darlington from 1992 until 2010, was seen as an arch-Blairite during his time in government.

As well as being health secretary, he also serves as chief secretary to the Treasury and Chancellor of the Duchy of Lancaster under the former prime minister.

After leaving Westminster, he was chair of the Social Mobility Commission between 2012 and 2017.

Like David MIliband, he would need to be made a peer in order to re-enter government.

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Analysis: Andy Burnham’s Big Speech Left Big Questions He Refused To Answer

Andy Burnham today showed exactly why Labour MPs are desperate for him to replace Keir Starmer as prime minister as he laid out his vision for the country.

The former mayor of Greater Manchester was pretty much everything the current PM is not.

From the smart-casual clothes he wore to the easy charm with which he delivered his speech, this was clearly a man who – unlike Starmer – is very comfortable in his own skin.

His remedy for the UK’s ills also stand in marked contrast to the man who he will replace in 10 Downing Street in less than a month’s time.

Burnham was clear that he wants nothing less than the complete “rewiring” of the way Britain is run, with a huge shift of power away from Westminster to local communities and regions across England.

That, he said, would lead to the biggest council house building programme of the post-war period, economic growth “in every postcode”, lower energy bills and prices coming down in the shops.

He also signalled a massive change in education policy, with a greater focus on technical qualifications rather than the drive to get more young people to go to university.

“I am going to do things differently,” Burnham declared. “I am going to break with the ‘more of the same’ approach that has got us here.

“I am going to give Britain the circuit-breaker it needs by building a more collaborative politics in Westminster, by taking power out of the centre and putting it in the hands of the people and places who can use it best.”

A bit like motherhood and apple pie, there was little in the speech that any reasonable person could, in good faith, take exception to.

But for all the soaring rhetoric about putting “hope in every heart”, it lacked one important thing: an explanation of how it will all work in practice.

Burnham failed to explain how putting more power in the hands of local politicians rather than those in Whitehall will magically improve the lives of everyone in the country was not explained.

It was therefore unfortunate, to put it mildly, that the many journalists who had been invited to watch the speech were not then given the opportunity to ask him questions about it.

Because let’s not forget, this is a man who was not even an MP a month ago, and yet stands on the threshold of assuming the highest office in the land without even having to go to the trouble of winning a leadership contest, let alone a general election.

What’s more, he is a man who – for all his previous ministerial experience from 20 years ago – has not even been an MP for the best part of a decade.

If this is not the time for him to answer detailed questions about what exactly he plans to do with the reins of power, then when till it be?

How does he plan to stop the small boats crossing the English Channel, for instance, or get to grips with the ballooning welfare bill?

And that’s before we even come to how he plans to deal with the threat posed by Vladimir Putin or repair the UK government’s relations with Donald Trump’s White House.

Which brings us to another – more worrying – difference between Andy Burnham and Keir Starmer.

For all his faults, the soon-to-be-former PM would not have made a speech like that and then refused to take any questions on it.

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Starmer Opens Door For Burnham To Start Receiving Government Briefings ‘As Soon As Possible’

Keir Starmer has opened the door for his likely successor Andy Burnham to start receiving government briefings as soon as possible.

The spokesperson for No.10 told reporters: “The prime minister wants a smooth transition, and has been clear that he wants to make this as easy as possible.

“That’s why the prime minister has agreed that access talks can take place with prospective candidates for the Labour leadership as soon as possible and before formal nominations have closed [on July 16].”

The prime minister’s spokesperson said that means they could start before nominations open on July 9.

So far only Burnham, who was sworn in as the Makerfield MP on Monday, has publicly confirmed that he will be running to replace Starmer.

Former health secretary Wes Streeting was expected to join any contest, but he has since announced he will be backing Burnham.

All eyes are on chief secretary to the PM Darren Jones and former Armed Forces minister Al Carns to see if they have the backing of the 81 MPs needed to join the race.

If Burnham runs uncontested, he could be in No.10 by July 17 or 18 at the earliest.

If there is a competition, Starmer explained on Monday that a battle for the crown will run across the summer and his replacement would be installed by September 1.

It’s unclear how the Cabinet Office will define a “prospective” candidate.

These confidential “access talks” will be led and coordinated by cabinet secretary Antonia Romeo.

Ministers will not be present and will not receive a report of discussions in line with the Civil Service Code.

Romeo will have overall responsibility for coordinating the process “once a request has been made and authorised by the prime minister”, according to the spokesperson.

The talks will focus on “formation of government and key policy priorities” so the civil service can “prepare for any outcome”.

“The civil service’s focus remains on serving the government of the day in line with the Civil Service Code,” the spokesperson said.

It’s understood there has not yet been a request to see these government briefings.

The prime minister also held his first cabinet meeting this morning since he announced his resignation.

According to the readout released by Downing Street, Starmer told his colleagues “he wanted whoever became the next prime minister to succeed.”

“He added he wanted an orderly transition, as he had set out yesterday, and would seek to resolve difficult issues in the coming weeks to support his successor.

“The prime minister said he would seek to make the transition as easy as possible, giving his full support to whoever followed in his footsteps.”

His official spokesperson also revealed the government will not make any major announcements or spending commitments until the new PM is in no.10.

As the UK’s top civil servant, Romeo has written to heads of departments advising them on how to continue as the “business of government will proceed as normal”.

However, the spokesperson said the long-awaited Defence Investment Plan will still be published before the Nato summit on July 7 – and is expected to include new spending plans.

This may prove to be an obstacle with Burnham as he allegedly wants to make a decision on spending himself, according to The Times.

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