Andy Burnham’s First Week as Prime Minister: Cabinet Overhaul and Policy Sprint

In his inaugural week, Prime Minister Andy Burnham launched a series of high-profile measures: an end-to-rough-sleeping pledge, a pause on Sir Keir Starmer’s prison-release scheme, a brief unfreeze and subsequent reversal of the personal-income-tax allowance, cuts to bus fares, a reduction of VAT on electricity bills, and lower business rates for pubs and clubs. The combined cost of these commitments is estimated at £1.74 billion a year, not counting any increase in defence spending. Burnham also appointed a new Cabinet that insiders describe as “factional” and heavily populated by trusted allies. The most notable change was the replacement of Chancellor Rachel Reeves with John Healey.

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The reshuffle has split Labour insiders. One MP, relieved to be free of “mad things” after two years of silence, said the new environment allows candidness. Critics highlighted the demotion of Bridget Phillipson (education) and Dan Jarvis (defence) as evidence of factional bias, while a supportive minister called the Cabinet “good” after a prolonged selection process.

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• Andy Burnham – Prime Minister, former Greater Manchester mayor.

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• John Healey – Chancellor of the Exchequer, former defence secretary.

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• Louise Haigh – First Secretary of State, instrumental in Cabinet selection.

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• Annalise Midgley – Chief Whip, oversaw junior-minister appointments.

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• Miatta Fahnbulleh – Energy Secretary, advocates net-zero by the mid-2030s.

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• Polly Billington – Minister for Energy Security and Net Zero, close ally of Foreign Secretary Ed Miliband.

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• Rachel Reeves – Former Chancellor, removed from the post.

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Several announcements have run into practical obstacles. The £850 million cost of removing VAT from electricity bills is slated to be financed by cancelling the previous government’s digital-ID programme; however, former chief secretary Darren Jones argued that the digital-ID scheme had never been fully funded, casting doubt on the claimed savings. Early press releases were issued at 6 a.m. because the announcements failed to clear overnight, indicating coordination challenges. Proposals to merge the Wales, Scotland and Northern Ireland offices and to place Thames Water into a Special Administration Scheme were reportedly abandoned.

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Lord David Blunkett, a long-time mentor of Burnham, said the Prime Minister had chosen a Cabinet “in his own image,” prioritising trusted allies over broader party management, but stressed that the true test will be whether the team can improve living standards before the next election.

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• “It means I don’t have to keep quiet on mad things after biting my tongue for two years.” — The MP

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• “He’s demonstrated he can be incredibly tough,” — Lord David Blunkett, one of Burnham’s political mentors

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• Funding of VAT removal: The government claims the £850 million cost will be offset by scrapping the digital-ID programme, while Darren Jones contends the programme lacks a genuine saving because it was never fully funded.

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• Policy implementation timing: Early-morning press releases suggest procedural delays, but no official explanation has been provided.

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Whitehall is already preparing videographers for the newly announced No 10 North hub, signaling a continued emphasis on high-visibility communication as the government settles into its first term.

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