Andy Burnham has appointed John Healey as chancellor of the exchequer in his first cabinet as prime minister, replacing Rachel Reeves, who confirmed her departure and declined another senior role. Healey's promotion comes just over a month after he resigned as defence secretary over disputes about military funding, having served in the role since July 2024.
Ed Miliband was named foreign secretary and Shabana Mahmood retains the home office, while Louise Haigh was confirmed as first secretary of state. Several senior figures, including David Lammy and Steve Reed, were dismissed from the cabinet.
Burnham said he would adhere to fiscal rules agreed under Keir Starmer's government but use any available flexibility. UK 10-year gilt yields rose to 5.049% following the appointments. Burnham also spoke with European Commission President Ursula von der Leyen and US President Donald Trump, agreeing to hold a UK-EU summit later this year.