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Burnham Names Ex-Defense Chief Healey to Serve as UK Chancellor

Burnham installed Healey after a sweeping reshuffle that removed several Starmer loyalists and put his own allies in top posts.

  • On Monday, Prime Minister Andy Burnham appointed former defence secretary John Healey as Chancellor of the Exchequer, replacing Rachel Reeves in his first major cabinet reshuffle.
  • Burnham replaced Sir Keir Starmer yesterday after becoming Labour leader last week, immediately moving to consolidate control by removing loyalists including David Lammy and Rachel Reeves.
  • Speaking outside Downing Street, the Prime Minister pledged to deliver "the most significant transformation in British politics in four decades," vowing a new political and economic model.
  • Former housing secretary Steve Reed voiced disappointment over his departure, urging those who served under Starmer to "show loyalty" to Burnham despite the cabinet upheaval.
  • Global leaders including US President Donald Trump congratulated Burnham on taking office, while markets assessed borrowing costs under Healey as the PM prepared a 10-year strategy for Britain.
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Center

John Healey, who resigned because of a lack of military budget, will be the new finance minister. Read more: Burnham promises to unleash a 10-year 'revolution' seen on the basis of reindustrializing and decentralizing the UK.

·Spain
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The new British Prime Minister loses no time – shortly after his appointment, Andy Burnham reorganized the cabinet.

·Zürich, Switzerland
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Lean Left

With the nomination of John Healey, the new British Prime Minister may have landed a coup: the defense minister resigned from protest should now give the Chancellor of the Treasury

·Vienna, Austria
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Some former ministers return to Burnham's cabinet. The new British Prime Minister shows that he wants the Labour Party one – only Keir Starmer's confidants do not belong to it.

·Frankfurt, Germany
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Politico Europe broke the news in Brussels, Belgium on Monday, July 20, 2026.
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