Andy Burnham is set to announce new support to help people with the cost-of-living crisis and will chair his first Cabinet meeting after he took office as Prime Minister.
The new premier promised to provide early “breathing space” for households struggling with the cost of living as he stood on the steps of No 10, pledging to set out details on Tuesday.
In his first address to the nation as Prime Minister, Mr Burnham pledged the biggest change to British politics in 40 years, and said he would deliver “a new political model and a new economic model” for Britain.
On Monday evening, he made sweeping changes to the Cabinet, starting with the appointment of John Healey as the new Chancellor to succeed Rachel Reeves.
A swathe of major figures from Sir Keir Starmer’s era joined Ms Reeves in leaving Government, including ex-deputy prime minister David Lammy, former attorney general Lord Hermer and former housing secretary Steve Reed.
Their replacements in senior Government roles were announced throughout Monday evening and will join Mr Burnham around the Downing Street Cabinet Room table on Tuesday.
Louise Haigh, a key ally of Mr Burnham who was instrumental in getting him into No 10, was made First Secretary of State and Chancellor of the Duchy of Lancaster, giving her a role as a fixer across government.
Ed Miliband was appointed Foreign Secretary, and Shabana Mahmood remains as Home Secretary, while Wes Streeting became the new Defence Secretary, and Angela Rayner returned to Government as Housing Secretary.
Once the dust had settled, it became clear that Mr Burnham had chosen not to appoint a new deputy prime minister, a post previously held by Ms Rayner and Mr Lammy.
The Department for Science, Innovation and Technology (DSIT) was meanwhile scrapped, with responsibilities for its areas of policy assigned to other departments.
Jonathan Reynolds was made Business Secretary with a beefed-up portfolio for his department that now includes science and innovation, while Lisa Nandy remained as Culture Secretary with an extended brief covering digital.
DSIT’s former responsibility for AI has meanwhile been transferred to the Cabinet Office, and Kanishka Narayan will now oversee AI policy as a minister straddling the Cabinet Office and Ms Nandy’s Department for Digital, Culture, Media and Sport.
Meanwhile, former Middle East minister Hamish Falconer will oversee the joint portfolio of intergovernmental and European relations.
A No 10 source said the new Cabinet brought together all parts of the Labour Party to deliver Mr Burnham’s agenda for the country.
Those who had proven delivery and who had the most experience had been tasked with overseeing the new Prime Minister’s key domestic priorities, the source said.
They also pointed out that Mr Burnham’s Cabinet had a balanced make-up – 50% men, and 50% women – and claimed that he had boosted the number of ethnic minority members of the Cabinet.
Among the measures Mr Burnham is exploring to help hard-pressed households with the cost of living are rent controls, support for energy bills and capping the cost of bus fares.
“We’re looking at measures that could make a difference this year. So we are looking at all of those things, but we’ll make more announcements tomorrow,” he told reporters in Downing Street’s rose garden on Monday.
A flurry of diplomatic phone calls also characterised Mr Burnham’s first day as Prime Minister.
The first among these were calls with US President Donald Trump and Ukraine’s President Volodymyr Zelensky.
In a Truth Social post, Mr Trump said he and the new Prime Minister had a “very good conversation”, adding: “The Prime Minister has got a big job ahead of him, but he will be able to do it and, of course, the U.S.A. will be there to help! We discussed North Sea Oil, Trade, the Military Alliance, Demining of the Hormuz Strait, and many other topics. The call was interesting, and went very well.
“I wished Prime Minister Burnham, GOOD LUCK AND GODSPEED!”
