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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