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Burnham Appoints Healey Chancellor Amid £28bn Defence Row

7/22/2026

Summary

Story summary

Burnham named Healey chancellor on Monday.
Healey quit as defence secretary days before the defence investment plan after a dispute over an extra £28 bn request.
Treasury chief Rachel Reeves blocked the £28 bn request, saying service chiefs misled Healey about funding the prior strategic defence review.
Burnham pledged not to raise income tax, VAT or national insurance and tasked Healey with funding defence spending, utility public-ownership and cost-of-living cuts.

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Story summary

Burnham named Healey chancellor on Monday.
Healey quit as defence secretary days before the defence investment plan after a dispute over an extra £28 bn request.
Treasury chief Rachel Reeves blocked the £28 bn request, saying service chiefs misled Healey about funding the prior strategic defence review.
Burnham pledged not to raise income tax, VAT or national insurance and tasked Healey with funding defence spending, utility public-ownership and cost-of-living cuts.