New chancellor expected to be revealed shortlypublished at 18:12 BST 20 July
Nick Eardley
Political correspondent, at Downing Street
Cameras are now trained on No 11, where we’re expecting to see the new chancellor soon.
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
Edited by Kieran Kelly and Ben Hatton, with reporting from chief political correspondent Henry Zeffman and cost of living correspondent Kevin Peachey
Nick Eardley
Political correspondent, at Downing Street
Cameras are now trained on No 11, where we’re expecting to see the new chancellor soon.
Judith Moritz and Daniel Wittenberg
As we reported earlier, a source close to Andy Burnham told the BBC that the new “No 10 North” in Manchester is up and running.
Some staff at the Greater Manchester Combined Authority (GMCA) only found out that a number of their colleagues would be leaving to join Burnham’s team after spotting them on TV inside Downing Street this lunchtime, the BBC understands.
Among those seen welcoming the new prime minister into No 10 in London were Claire Norman and John Wrathmell, the GMCA’s directors of communications and strategy respectively.
Both worked closely with Burnham during his time as Mayor of Greater Manchester.
Burnham has previously said that the new arm of Downing Street based in Manchester would help re-balance power across the UK by bringing decision-making closer to communities outside London.
In his first phone call with a foreign leader since entering office, Burnham invited US president Donald Trump to visit Manchester during a future visit.
Image source, ReutersHilary Benn, pictured last week
Hilary Benn has announced that he will be returning to the backbenches, having been Northern Ireland secretary under Keir Starmer.
In a thread on X, he says that he wishes his successor "all the very best in working with the Executive to protect stability, continuing to generate growth and investment and in taking forward the Troubles Bill which is so important for so many families".
Separately, Baroness Jenny Chapman has confirmed she'll leave the post of international development and Africa minister.
Chapman says she is "disappointed" to be leaving but wishes the "prime minister and his new team every success".
Image source, Getty ImagesAndy Burnham told Donald Trump that he hopes to show him "what Manchester has to offer" in a future visit, according to a Downing Street read-out of a conversation between the two earlier this afternoon.
"The prime minister spoke to the President of the United States, Donald Trump, shortly after taking office this afternoon," says a Downing Street spokesperson.
"The prime minister also hoped that he would be able to show the president what Manchester had to offer during a visit in the future."
The spokesperson adds that Burnham "underlined his commitment to defence and security" and said security was "at the top of his agenda".
Nick Eardley
Political correspondent, at Downing Street
Image source, PA MediaLouise Haigh - one of the Burnham inner circle - is next to arrive here.
There was talk she would get a senior job to help the new PM push his agenda, perhaps the Cabinet Office.
But nothing has been confirmed yet.
Nick Eardley
Political correspondent, at Downing Street
It’s getting lively in Downing Street as the first people arrive to be appointed to the cabinet.
It’s fair to say John Healey arriving first took many by surprise. We’re still waiting for confirmation of his job.
Image source, PA MediaEd Miliband and Shabana Mahmood are walking up Downing Street together.
They follow John Healey who arrived a short time ago.
Miliband has been serving as energy secretary under Keir Starmer, while Mahmood has been home secretary. There has been speculation around both over the possibility of becoming chancellor under Burnham - but nothing has been confirmed.
Pallab Ghosh
Science correspondent
Image source, PA MediaThere’ll be sadness among some of the scientific community over the resignation of Lord Vallance as science minister earlier today.
As the former chief scientific adviser who led the research community's response to the Covid pandemic, he was regarded by the scientific community as one of their own: one of Starmer’s experts, who knew the detail about how UK science works and how to make it work better.
Lord Vallance’s lobbying was one of the factors that led to research funding having a record settlement from the Treasury at a time when other departmental budgets did less well.
His main achievement was to align that extra spending with the government’s growth agenda and more science spending outside of the Oxford-Cambridge-London "golden triangle".
But he leaves office with some scientists thinking that his reorganisations may have led to long-term damage to the UK’s strengths in basic science.
Some assert that his focus on growth has led to a plan where too much money is diverted away from what UK scientists do best, which is to discover things which at first sight seem to have no useful purpose, such as the discovery of the structure DNA, but then lead to transformative new industries as well as Nobel prizes.
Image source, ReutersDarren Jones says that Andy Burnham has called him "to tell me I won’t be a part of his new cabinet".
In a thread on X, the former Chancellor of the Duchy of Lancaster says: "I’ll continue to fight from the backbenches for more power, wealth and opportunity for the many - and proudly represent the place I was born and raised as MP for Bristol North West."
John Healey, who quit as Keir Starmer's defence secretary last month, has been pictured walking up Downing Street.
Image source, PA MediaJo Stevens says that it has been an "honour" to serve as Welsh secretary.
In a message on X, she says that she wishes Burnham and her successor "the very best in their new roles".
She also pays tribute to Keir Starmer, who she says took Labour "from comprehensive rejection by the country to the greatest general election victory in my lifetime".
"I am proud to have served under him, and to call him my friend," she adds.
Bernd Debusmann Jr
White House reporter
Image source, ReutersA White House official has confirmed to the BBC that President Trump spoke to Prime Minister Burnham this morning.
We don't know what exactly was said. In this administration, the White House often avoids formal read-outs of the call, instead letting the president express his thoughts directly through Truth Social.
The two have much to discuss. Already, we saw Trump write on Truth Social that "the people of Aberdeen are dancing in the streets" over a decision to open the North Sea for oil drilling - a topic he brings up frequently.
With the war in Iran and efforts to secure the Strait of Hormuz seemingly heating up, Trump will also likely be hoping that Burnham takes a more active role in the conflict than Keir Starmer did. More than anything else, that issue soured Trump's feeling towards Starmer.
And while Trump has had clear policy differences with the Labour government - notably over immigration - the US president is a man who is clearly enamoured with British culture and with the country as a whole, which could provide an opening for British "soft power" diplomacy to create a connection between the two men.
Image source, EPALiz Kendall says she will no longer be serving as science and technology secretary.
In a statement shared on X, Kendall says that it has been a "privilege" to be in government.
She says: "I wish whoever takes on the science and technology portfolio the very best for the future."
She adds that Andy Burnham will "take this country from strength to strength. I stand ready to support him in any way I can".
Raphael Sheridan
Economics producer
The interest rate on a form of UK government debt has risen above 5% for the first time since Thursday.
Andy Burnham told journalists today that the government would “stick to the fiscal rules” on government borrowing but would “use any flexibility within them”.
The government’s fiscal rules are self-imposed and were created by previous Chancellor Rachel Reeves.
Burnham added: “None of this is about taking risks with the economy.”
Shortly after those comments were made public, the interest rate on 10-year government debt jumped to above 5%.
Image source, Getty ImagesLord Richard Hermer has announced he is out as attorney general after two years in the role.
In a statement on social media, he says he was "so lucky" to be part of Starmer's team, adding that he will continue to support Burnham's government "from the backbenches".
"Andy and his team know they have my utmost support and I wish them nothing but success," he adds.
Dominic Casciani
Home and legal correspondent
David Lammy’s departure as justice secretary raises challenging questions for continuity in one of the most complex government departments which has some of the most difficult workloads.
Despite the Ministry of Justice’s centrality to national and community security - running prisons, probation and the courts to keep the public safe from criminals - there have now been 11 Justice Secretaries in 10 years.
Each new minister needs months to get up to speed with the enormous workload and the daily crises the department faces. In policy terms, there's a real question now whether a radical reform to the criminal courts to solve unprecedented backlogs will continue, or will be scrapped.
That plan includes curtailing the ancient right to trial by jury. It is a deeply opposed by many who work in or care about the criminal justice system.
Starmer's plan to radically change the sentencing of criminals and how prisons attempt to rehabilitate them is already well under way.
Sima Kotecha
Senior UK correspondent
Image source, PA MediaDavid Lammy has gone as Justice Secretary - just weeks before the new Sentencing Act 2026 is supposed to be enacted.
From September, thousands more inmates are set to be released to create more space in our prisons. More criminals will serve sentences in the community.
Some insiders at the Ministry of Justice have been critical of David Lammy's time as Justice Secretary, sometimes feeling as if his role as Deputy Prime Minister was given priority.
His supporters would vehemently disagree. His background and knowledge of the justice system have been appreciated by those closer to him.
Earlier we heard that Lord Timpson had resigned from his role as prisons minister, meaning we will have two significant roles potentially filled by people new to the department, just weeks away from new legislation coming into play.
Image source, ReutersConservative shadow chancellor Mel Stride tells the BBC that former Chancellor Rachel Reeves was "vulnerable" to being sacked, calling her departure "inevitable".
Stride says that being the first female chancellor was a "considerable achievement" and admits he "rather liked her in many ways as a person".
But her legacy is one of "wholesale mismanagement of our economy" and "leaving us with more challenges than opportunities going forward", he adds.
Chris Mason
Political editor, at Downing Street
Rachel Reeves was offered a "big job", as a friend put it, but declined and has now left the cabinet.
Update: I now understand the job Reeves was offered was in the cabinet.
Jack Fenwick
Political correspondent
Andy Burnham has said he will be "looking at" the tax-free personal allowance ahead of his first Budget in the autumn but stressed that changing it would be "difficult" in the current economic circumstances.
The new prime minister said he had "heard issues related to the personal allowance more than anything on the doorsteps in Makerfield" and said "it's people on the lowest incomes perhaps who've most been affected".
He added: "It's difficult because changing the threshold is not without significant consequences but I'm looking at it."
Asked if he could pay for a change by reintroducing the 50p top rate of tax, he said it was "premature to say that".
Burnham also said he "does not want to leave office" without reforming the social care system. He said that Westminster's record on the issue over the last 30 years was "not defensible".
The new prime minister added: "How many people have lost their homes and their savings in that time? We need to face it and fix it."
Speaking to reporters shortly after his speech on the steps of Downing Street earlier, he said he was "ready to use some of my political capital" on the issue.
Burnham recommitted to sticking to the previous government's fiscal rules but said he would "use any flexibility within them".
He added: "None of this is about taking risks with the economy".