John Healey appointed Chancellor amid Andy Burnham Cabinet clear-out

John Healey has been named Chancellor in Andy Burnham’s first Government appointment, as he purged the Cabinet of loyalists of his predecessor Sir Keir Starmer.

David Lammy, Rachel Reeves and Steve Reed were among the high-profile Cabinet ministers to be shown the door by the new Prime Minister.

Mr Healey’s posting to the top of the Treasury came as a surprise to Westminster.

Mr Healey, who recently resigned as Sir Keir’s defence secretary in a row over military funding, replaces Ms Reeves in the role and is seen as a safe pair of hands.

Energy Secretary Ed Miliband and Home Secretary Shabana Mahmood, who had both been tipped for the chancellor job, walked into No 10 together, indicating they are in line for senior roles.

Louise Haigh, who left her post as transport secretary under Sir Keir in 2024 and has been planning Mr Burnham’s ascent to power since last year, also went into Downing Street.

Ms Reeves lost her Treasury brief and is understood to have turned down an offer from Mr Burnham for another senior role in Government.

Mr Lammy, Sir Keir’s deputy prime minister and justice secretary, and previously foreign secretary, announced he was leaving Government on social media, while Mr Reed, seen as an arch-loyalist to Sir Keir, said he was “disappointed to be leaving Government now” in a letter to Mr Burnham.

Peter Kyle, who was business secretary, former technology secretary Liz Kendall, and Lord Hermer, the now ex-attorney general, also announced they were leaving Government.

Jo Stevens lost her job as secretary of state for Wales and Darren Jones, who served as Sir Keir’s chief secretary, said Mr Burnham told him he “won’t be a part of his new cabinet”.

Hilary Benn, who served as Northern Ireland secretary, is gone, as is Foreign Office minister Baroness Jenny Chapman of Darlington, and EU relations minister and paymaster general Nick Thomas-Symonds.

Published: 20/07/2026 by Radio NewsHub