Andy Burnham has overhauled the Labour Cabinet, appointing John Healey as Chancellor in a move that sidelines Ed Miliband. The shake-up involves the removal of numerous Keir Starmer loyalists and a signaled pivot toward left-wing economic policies.
John Healey's ascent to No11 over Ed Miliband
In a move that defied widespread expectations, Prime Minister Andy Burnham has appointed John Healey as Chancellor of the Exchequer. According to the report, this decision serves as a significant snub to Ed Miliband and the Labour Left, who had been lobbying for Miliband to take the Treasury role. While Miliband has been assigned to the Foreign Office, Healey—a former defence sceretary and Treasury minister under Tony Blair—is viewed by No10 sources as an "experienced, trusted" figure capable of maintaining fiscal stability while pursuing reindustrialization.
The appointment of John Healey suggests that Andy Burnham intends to balance radical social goals with a disciplined approach to the current fiscaal rules. As the source reported, Healey and Burnham share a vision for devolution and addressing the cost-of-living crisis through the backing of British industry. This strategic choice allows the Prime Minister to distance himself from the more ideological demands of the Labour Left while still installing a heavyweight in the Treasury.
The ousting of David Lammy and the Starmer loyalists
The transition to Andy Burnham's leadership has been marked by a ruthless clearing of the previous administration's guard... High-profile Starmer loyalists, including former deputy PM David Lammy, Steve Reed, Peter Kyle, and Liz Kendall, have been removed from their posts. Other casualties of the purge include Baroness Chapman, Attorney General Lord Hermer, Darren Jones—who was reportedly fired via telephone—and Northern Ireland Secretary Hilary Benn.
This sweeping removal of the moderate wing reflects a broader ideological shift within the Labour Party. Steve Reed, the outgoing Housing Secretary,expressed his disappointment and pointedly remarked that those who lacked loyalty to Keir Starmer should now demonstrate it to Andy Burnham. By removing these figures, Andy Burnham is effectively dismantling the centrist architecture of the Starmer government to make room for his own "lurch to the Left."
Rent controls and the return of the 'death tax'
During his Downing Street debut, Andy Burnham outlined a vision for Britain that rejects the economic trajectory set by Margaret Thatcher. He proposed a "ten-year plan" for reindustrialization and a move toward stronger public control of essential services. To fund social care reforms, the Prime Minister signaled his intention to bring back a "death tax" inheritance raid, a move that marks a sharp departure from previous fiscal conservatism.
The Prime Minister's immediate priorities include ending rough sleeping and introducing cost-of-living relief, which may include energy bill curbs and rent controls. However, these proposals have already drawn fire from the private sector; landlords have warned that artificially capping rents will likely force properties off the market,potentially exacerbating the housing shortage. This tension between social equity and market viability will likely be the defining conflict of John Healey's tenure at the Treasury.
The fate of Angela Rayner and the 50p tax contradiction
Despite the extensive purge, several "big beasts" of the party remain in limbo. It is not yet known whether Angela Rayner, Wes Streeting, or Yvette Cooper will survive the shake-up, leaving a significant portion of the senior leadership in uncertainty. The report notes that these figures are still awaiting decisions on their roles in the new administration.
Furthermore , a glaring contradiction has emerged regarding the government's tax policy. While Andy Burnham has committed to a Labour manifesto that explicitly ruled out a 50p top rate of tax, he has simultaneously left the door open to introducing such a rate. This ambiguity leaves markets and high-earners questioning whether the manifesto remains a binding document or if the Prime Minister intends to pivot toward a more aggressive taxation regime.
Comments 0