Andy Burnham says his government will show how it's "going to pay" for policies during his first cabinet meeting as prime minister
He also tells his ministers they must be "prepared to make difficult decisions" and form part of a "cost of living government" - a look at Burnham's first full day as PM
Earlier, Burnham said he would scrap VAT on household electricity bills in October, saving a typical household about £45 a year - here's what that could mean for you
Downing Street insists the plan is "fully funded" by scrapping Keir Starmer's planned digital ID scheme, after ex-minister Darren Jones said the ID scheme was itself "unfunded"
The Tories welcome the cut to energy costs, but question how it will be funded; the Lib Dems say the move doesn't go far enough; the Greens call for a "robust energy cap"
Meanwhile Burnham's "No 10 North" in Manchester will come at no extra cost to taxpayers, his spokesperson says
Image source, PoolLucy Powell, the Deputy Leader of the Labour Party and a key ally of Andy Burnham, has just arrived at No 10.
Powell served as leader of the House of Commons from July 2024 to September 2025 under Keir Starmer.
Image source, Getty ImagesShabana Mahmood has been one of the more prominent Labour figures since Labour's 2024 general election win.
MP for Birminham Ladywood since 2010, Mahmood was initially appointed justice secretary before replacing Yvette Cooper as home secretary in September 2025.
Shortly after being appointed, she announced sweeping changes to the UK’s asylum system, brushing off criticism from some Labour MPs and describing the previous system as “out of control”.
Over the past few weeks, Mahmood has been one of two names rumoured to be in the running to take up residence in No 11 as Andy Burnham’s chancellor – the other being Ed Miliband.
Despite Mahmood's lack of economic background, the markets reacted positively to rumours of her potential appointment and the "sensible approach" it may indicate, financial expert Kathleen Brooks told the BBC.
Shabana Mahmood, who has retained her role as home secretary, says it is an "honour" to keep the job.
In a post on X, alongside a picture of her and Burnham holding hands and smiling, she writes: "I may be biased, but it's the best job in the business.
"We have begun the work of major reform, to make our streets safer and our immigration system fair for all. Now let’s finish the job."
Image source, EPAEd Miliband, speaking to BBC political editor Chris Mason on behalf of the broadcast pool, says it is the "honour of my life" to serve as foreign secretary.
Speaking as he left No 10 following his appointment, he said: "My parents came here as Jewish refugees fleeing from the Nazis, and for them, Britain provided sanctuary and a beacon of hope in the fight against fascism".
He added that at a time "when values of democracy, the rule of law and freedom are under threat as never before", he would "carry that spirit, their spirit, into my work as foreign secretary".
Image source, ReuterFormer Deputy PM Angela Rayner is the latest former minister to be spotted on Downing Street as Andy Burnham selects his cabinet.
She resigned as Starmer's deputy PM and housing secretary in September 2025 after admitting she should have paid a higher rate of stamp duty when purchasing a flat in Hove.
This matter was settled in May of this year, with Rayner stating she had been "exonerated" of the accusation she had "deliberately sought to avoid tax".
Jonathan Beale
Defence correspondent
Image source, @10DowningStreetJohn Healey as chancellor will now have to deliver on what John Healey as former Defence Secretary said the Treasury failed to do - properly fund Britain’s Armed Forces.
When he resigned as Keir Starmer’s Defence Secretary last month he accused the Treasury of being “unwilling” to fund his Defence Investment Plan.
Though he was offered more money he said it wasn’t enough to keep the country safe and included what he called “treasury trickery” - with a lack of clarity on what new money the Ministry of Defence would get.
Healey also made clear that he wanted a clear plan to increase UK defence spending to 3% of GDP by 2030.
Now he’s the chancellor he will have the opportunity to set out that plan himself.
If Healey is true to his words it can only mean more positive news for his successor as defence secretary.
Image source, ReutersIn his first statement since being named chancellor by Andy Burnham, John Healey says the appointment is the "greatest privilege".
"Together, we will build a new economy, build new hope and advance the working people of this country," he writes on X.
"Time to get on with the job," he adds.
After weeks of speculation, announcements of Andy Burnham’s cabinet appointments are now coming through thick and fast. So, if you’re struggling to keep up, here’s a recap of who’s in the new Downing Street team.
We’ll keep you updated on further movements.
Image source, ReutersA short while ago, Work and Pensions Secretary Pat McFadden strolled up Downing Street and entered No 10.
Shortly after him, Culture Secretary Lisa Nandy also arrived at the PM's address.
Image source, PA Media
Image source, EPAThe new Foreign Secretary Ed Miliband had been serving as energy secretary under Keir Starmer, and has been touted as a contender for chancellor under Andy Burnham.
The former Labour leader has been an MP for more than 20 years, representing Doncaster North since 2005, and also served in government under Gordon Brown and Tony Blair.
Following Keir Starmer's resignation announcement last month, Miliband said that Labour "must now redouble our efforts to deliver the bold and credible change".
Image source, PA MediaLouise Haigh, who has emerged as a key ally of Andy Burnham, has now been confirmed as first secretary of state and chancellor of the Duchy of Lancaster.
The former transport secretary, who resigned in November 2024 after it emerged she pleaded guilty to a fraud offence a decade ago, replaces Starmer ally Darren Jones in the role.
Earlier, Jones said Burnham had called him "to tell me I won’t be a part of his new cabinet".
Image source, Downing StreetShabana Mahmood has been reappointed home secretary by Andy Burnham.
She first took on the role in September 2025, replacing Yvette Cooper in Keir Starmer's first reshuffle.
Ed Miliband is taking over from Yvette Cooper as Foreign Secretary in Andy Burnham's cabinet.
Miliband, who also served as leader of the Labour Party from 2010 to 2015, was energy secretary in Keir Starmer's government.
Faisal Islam
Economics editor
John Healey has just arrived in the Treasury. He is a surprise choice as chancellor but perhaps should not have been.
He spent half a decade in Gordon Brown’s Treasury with specific knowledge of that era’s attempt to regenerate and devolve power - the Regional Development Agencies, later scrapped by the Coalition Government.
He is well-respected on the international stage and has built links with key economic allies in Europe, the Middle East and the United States.
Image source, ReutersBritain's newly appointed Chancellor, John Healey, has been pictured leaving No 11.
The former defence secretary is the first cabinet appointment of Prime Minister Andy Burnham.
Image source, EPAForeign Secretary Yvette Cooper has arrived at No 10 amid the selection of Andy Burnham's new cabinet.
Cooper has served as both foreign and home secretary under Keir Starmner, and worked with Burnham in the Labour governments of Tony Blair and Gordon Brown.
Denis Doherty
BBC News
We are now up to 11 individuals who sat around the cabinet table of previous Prime Minister Keir Starmer who have been sacked or left the government now that Andy Burnham is in No 10.
Eight full cabinet ministers - Rachel Reeves, David Lammy, Liz Kendall, Peter Kyle, Hilary Benn, Jo Stevens, Darren Jones and Steve Reed - are joined by three others who attend cabinet; Lord Hermer, Baroness Chapman and Nick Thomas-Symonds.
Thomas-Symonds, the latest to go, served both as the Paymaster General and as the Minister for the Constitution and European Union Relations.
Louise Haigh is expected to be appointed First Secretary of State and Chancellor of the Duchy of Lancaster.
Haigh previously served as transport secretary under Keir Starmer.
Image source, EPA/ShutterstockJohn Healey was the defence secretary from July 2024 to June this year - resigning from Keir Starmer's government in a row over military spending.
He is currently the MP for Rawmarsh and Conisbrough, first being elected to Parliament in 1997.
Healey served as parliamentary private secretary to Chancellor Gordon Brown, from 1999 to 2001.
Between 2001 and 2010, he successively served as adult skills minister, treasury minister, local government minister and housing minister.
John Healey has been appointed chancellor by Andy Burnham.
He replaces Rachel Reeves, who had served as Keir Starmer’s chancellor since Labour’s 2024 landslide election win.
Healey, who was defence secretary under Keir Starmer, resigned from the role on 11 June following a row over defence spending.