Angela Rayner returns in cabinet reshuffle as Andy Burnham becomes prime minister

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Andy Burnham has announced a fresh tax cut to remove VAT from domestic electricity bills from 1 October, the first in what is expected to be a series of policy announcements on Tuesday morning.

Chancellor John Healey said the cut would be funded from cancelling the Digital ID programme. “For too long, too many people have struggled with the cost of living,” he said. “Today’s energy tax cut will give families some breathing room on bills, and provide some reassurance this winter.”

Mr Burnham was still appointing his cabinet late into Monday night, with Angela Rayner returning to government as housing secretary, Healey named as chancellor and Wes Streeting appointed as defence secretary.

Ed Miliband secured a place as foreign secretary and Shabana Mahmood is remaining as home secretary.

Louise Haigh, who managed Mr Burnham’s Makerfield campaign, has been rewarded for her loyalty with a job at the heart of government as first secretary of state and chancellor of the Duchy of Lancaster.

Chancellor Rachel Reeves, deputy prime minister David Lammy and housing secretary Steve Reed, all allies of Sir Keir Starmer, were sacked by the former mayor of Greater Manchester and have returned to the backbenches.

Pictured: the members of Burnham's cabinet

Bryony Gooch21 July 2026 07:00

Burnham cuts VAT on electricity bills in first major policy announcement

Chancellor John Healey said the cut would be funded from cancelling the Digital ID programme.

“For too long, too many people have struggled with the cost of living,” he said. “Today’s energy tax cut will give families some breathing room on bills, and provide some reassurance this winter.”

The new premier promised to provide early relief for households struggling with the cost of living as he stood on the steps of No 10 on Monday, pledging to set out the details today.

The new prime minister promised to provide ’breathing space’ for households struggling with the cost of living

Adam Withnall21 July 2026 06:32

Analysis: Burnham’s shock pick for chancellor signals a true government overhaul

The new prime minister has sought a compromise figure over the favourites from the right or left of the party, as political editor David Maddox explains

Bryony Gooch21 July 2026 06:00

Watch: Political Correspondent Millie Cooke reports from Downing Street after Burnham delivers first speech

Political Correspondent Millie Cooke reports from Downing Street after Burnham delivers first speech

Bryony Gooch21 July 2026 05:00

Who are the key winners and losers of Andy Burnham’s reshuffle so far?

Andrew Burnham - who took over as prime minister promising a “circuit breaker” for British politics - has started in post with a bang. The new PM conducted a brutal purge of Starmer loyalists, sacking more than nine ministers who had close ties with his predecessor. David Lammy, Darren Jones, Rachel Reeves and Peter Kyle all left the government, while others - including John Healey - had shock promotions.

Here, The Independent looks at the key winners and losers of today’s brutal reshuffle so far.

The prime minister has conducted a brutal purge of Starmer loyalists and made some shock appointments to key government roles. Here, The Independent looks at the main winners and losers of Andy Burnham’s reshuffle

Bryony Gooch21 July 2026 04:35

Watch: John Healey appointed Chancellor of the Exchequer by Andy Burnham

John Healey appointed Chancellor of the Exchequer by Andy Burnham

Bryony Gooch21 July 2026 03:15

What Burnham’s main policy pledges mean for you

Andy Burnham has made his inaugural speech as prime minister, giving the nation more detail on his plans and vision for his time in office.

The former Greater Manchester mayor ran uncontested for the position after securing the backing of 349 Labour MPs, making it impossible for anyone to stand against him.

He became Labour leader on Friday, and met with King Charles today to form a government after Sir Keir Starmer formally resigned.

The new prime minister has promised to bring forward the ‘biggest changes in the last 40 years’

Bryony Gooch21 July 2026 02:20

The full list of Cabinet positions:

  • Rt Hon John Healey MP as chancellor of the exchequer
  • Rt Hon Ed Miliband MP as foreign secretary
  • Rt Hon Louise Haigh MP as first secretary of State, chancellor of the Duchy of Lancaster, and minister for the cabinet office
  • Rt Hon Shabana Mahmood MP home secretary
  • Rt Hon Yvette Cooper MP as health and social care secretart
  • Rt Hon Pat McFadden MP will work and pensions secretarty
  • Rt Hon Angela Rayner MP will return as secretary for communities, housing and local government (MHCLG)
  • Rt Hon Jonathan Reynolds MP as secretary of state for business, inovation, science and trade
  • Rt Hon Lucy Powell MP as education secretary
  • Anneliese Midgley MP as chief whip
  • Rt Hon Bridget Phillipson MP will remain minister for women and equalities
  • Rt Hon Lisa Nandy MP will remain secretary of state for digital, culture, media and sport (DCMS)
  • Rt Hon Wes Streeting MP as defence secretary
  • Alex Norris MP as lord chancellor and secretary of state for justice
  • Dame Angela Eagle DBE MP as secretary of state for environment, food and rural affairs
  • Miatta Fahnbulleh MP as secretary of state for energy security and net zero
  • Stephen Kinnock MP as secretary of state for Wales.
  • Sir Chris Bryant MP as secretary of state for Northern Ireland.
  • Rt Hon Ellie Reeves KC MP as attorney general
  • Rt Hon Emma Reynolds MP as chief secretary to the treasury
  • Kanishka Narayan MP as minister of state (minister for Artificial Intelligence) jointly in the cabinet office and DCMS.
  • Hamish Falconer MP as minister for intergovernmental relations and European relations
  • Rt Hon Heidi Alexander MP will remain as transport secretary
  • Rt Hon Douglas Alexander MP will remain as secretary of state for Scotland.
  • Rt Hon Sir Alan Campbell MP will remain as lord president of the Council and leader of the House of Commons.
  • Rt Hon Baroness Smith of Basildon will remain as lord privy seal and leader of the House of Lords.
  • Matthew Pennycook MP will remain as minister of state in the MHCLG.

Bryony Gooch21 July 2026 01:10

Watch: David Maddox on Andy Burnham's new cabinet

David Maddox on Andy Burnham's new cabinet

Bryony Gooch21 July 2026 00:30

Jobs announced for Alan Campbell, Matthew Pennycook and more

Emma Reynolds has been appointed as chief secretary to the Treasury, while Baroness Smith will remain as lord privy seal and leader of the house of lords.

Alan Campbell will meanwhile remain as Lord president of the council and leader of the house of commons.

Matthew Pennycook will remain as minister of state in the ministry of housing, local communities and government. He will attend cabinet.

Bryony Gooch20 July 2026 23:33