JILL LAWLESS - Associated Press
•7/21/2026
LONDON (AP) — New U.K. Prime Minister Andy Burnham will gather his Cabinet for a first meeting on Tuesday, after purging allies of predecessor Keir Starmer from the government.
Burnham made a small down payment on his pledge to give people “breathing space” in their finances, announcing a tax cut on energy bills that will save the average household about 45 pounds ($60) a year. The cut will take effect Oct. 1, Burnham said, with the funding coming from scrapping a plan for digital ID cards announced by Starmer.
The former mayor of Greater Manchester entered Downing St. on Monday after replacing Starmer as leader of the governing Labour Party, becoming Britain’s seventh prime minister since 2016. Starmer resigned just two years after winning a landslide election victory, forced out by his own party after a series of missteps and U-turns.
In his first speech as prime minister, Burnham pledged to ease the cost of living, decentralize political power, revitalize industry and end street sleeping by homeless people, which is a tall order.
First, he set about remaking the government in his image.
Starmer’s finance minister, Rachel Reeves, is out, replaced by John Healey, a former defense secretary who resigned in June and accused the Treasury of failing to spend enough on the military at a time of rising threats. In an interview after he quit, Healey called the Treasury “a dead hand on dynamic government” and “in denial.”
Healey has said defense spending, due to be 2.6% of GDP next year, should rise to 3% by 2030. Now he will have to find the money.
Wes Streeting, whose resignation as health secretary in May helped topple Starmer, takes over the defense portfolio.
In a reminder of the growing international tensions Britain faces, a Russian warship carried out a live-fire weapons exercise in the English Channel on Monday, the day Burnham took office.
The Ministry of Defense said the frigate Neustrashimy was being shadowed by the Royal Navy when it conducted the exercise in international waters about 46 miles (74 kilometers) south of Plymouth in southwest England.
“The Royal Navy monitored that exercise throughout, continues to track the vessel’s activity closely, and stands ready to protect U.K. national security,” the defense ministry said.
Other key Cabinet appointees include Foreign Secretary Ed Miliband, Housing Secretary Angela Rayner and Business Secretary Jonathan Reynolds, who has an expanded brief that includes innovation and science.
Louise Haigh, a key Burnham ally who helped engineer his rise to the top, becomes First Secretary of State and Chancellor of the Duchy of Lancaster, effectively the deputy prime minister.
Home Secretary Shabana Mahmood, who has overseen contentious rules designed to reduce immigration, keeps her job.
Burnham removed several of Starmer's senior ministers from the government including ex-Deputy Prime Minister David Lammy, former Business Secretary Peter Kyle and Starmer's chief secretary, Darren Jones.
