Andy Burnham, the new UK prime minister, appoints John Healey as Chancellor of the Exchequer, replacing Rachel Reeves, Downing Street announces. Healey previously served as defence secretary under Burnham’s predecessor, Keir Starmer, and resigned last month over a dispute about military funding. Several other senior political figures are also reshuffled. Reports say Keir Starmer allies are removed from cabinet, including Reeves, along with others, while some figures return to backbenches. The coverage also says Shabana Mahmood remains home secretary, while Ed Miliband becomes foreign secretary. Another appointment mentioned is Louise Haigh, described as a Burnham ally, becoming Chancellor of the Duchy of Lancaster.
Downing Street says Burnham chose Healey as an experienced, trusted figure to deliver the government’s economic approach and priorities, including re-industrialisation, devolution, and addressing the cost-of-living. In his resignation from the previous government, Healey criticized the lack of funding for defence, including the absence of a plan to reach spending of 3% of national income on the military by 2030. Other outlets also report that the wider reshuffle includes a change at defence secretary, with Healey’s move potentially aligning with an expectation of higher defence spending.