Rachel Reeves wishes the "very best of luck" to her successor at the Treasury.

In her post on X, she says it "has been the privilege of my life to serve as the Chancellor of the Exchequer".

She goes on to say: "To every young woman and girl let my time in office show there should be no ceilings on your ambitions, your hopes or your dreams.

"I wish the very best of luck to my successor, Andy and his cabinet. You have my full support, and I will continue to play my part in helping this Labour government deliver the change the country needs."

Image source, Getty Images

Rachel Reeves is out as chancellor, she has announced on X.

"I wish the very best of luck to my successor, Andy and his cabinet," she writes.

Jack Fenwick
Political correspondent

Image source, PA Media

Peter Kyle has been sacked as business secretary, BBC News understands.

Lammy says in a statement on X that it has been the "great privilege of my life" to serve in Starmer's government as foreign secretary, justice secretary and as Britain's first black deputy prime minister.

As foreign secretary and deputy prime minister, Lammy says: "I helped rebuild Britain’s relationships with our European allies after the catastrophic Brexit years."

He says he is proud of what the government has achieved and he will continue to serve the people of Tottenham and "support this Labour government from the backbenches".

Image source, Reuters

David Lammy, Keir Starmer's deputy prime minister, has confirmed that he is not part of Andy Burnham's government.

He says on X: "I would have been proud to continue serving in Cabinet. But a new Prime Minister is entitled to build his own team, and I wish Andy Burnham and the new Cabinet every success."

Cost of living help being announced much earlier than expectedpublished at 15:50 BST 20 July

15:50 BST 20 July

Faisal Islam
Economics editor, at Downing Street

The new PM vowed that help on the cost of living, including how it is paid for, will come tomorrow.

It is much earlier than expected, and explains why he was in the Treasury at the weekend.

This could be a notable switch in taxes towards consumers, but the implication is that what is given away would be raised elsewhere.

The new chancellor will be working through the night. These are the sort of announcements normally left until Budgets.

He also said there would be a 10 year plan for the country and the economy later this year, likely to flesh out his wider plans on decentralisation and devolution.

His first priority going through the doors, he said would be a national plan to end rough sleeping.

In his letter to Burnham, external, Steve Reed says that former PM Keir Starmer "showed loyalty" in appointing him to the cabinet.

"I make no apology for returning that loyalty," Reed adds.

"It's what is expected of functioning teams and I hope those who did not show loyalty to Keir will now show it to you."

Image source, PA Media

Steve Reed is out as housing secretary, following Andy Burnham's appointment as PM.

In a letter to Burnham shared on X, Reed says: "I am disappointed to be leaving government now. I wish your new team every success."

Joshua Tindall
Political journalist

Image source, UK Parliament

The Conservative Party has issued a response to Andy Burnham pledging to end rough sleeping.

Shadow housing secretary James Cleverly says "there is precious little detail on how this will be paid for".

"Burnham must come clean on what other MHCLG programmes have been salami-sliced to fill the gap," he adds.

“In Manchester, Burnham promised to end rough sleeping, but failed because he didn’t do the hard work necessary. Now, again, he is making pledges without any plan for delivery."

“If he is really serious about Government, he should lay out proposals cut welfare, fund defence and get Britain working again. The Conservatives are the only party that have done the hard work and set out the plan to do that.”

Madeleine Lake
Live reporter

We've had reaction from across the UK political spectrum to Andy Burnham becoming the new prime minister.

Here's what's been said so far:

Conservative leader Kemi Badenoch says she wishes Burnham success, but adds that he must not "repeat the mistakes of Keir Starmer's premiership".

Lib Dems leader Ed Davey has expressed disappointment that Burnham did not mention much on "social care, on Europe, or on protecting our precious natural environment", and that "Britain can't wait much longer".

The Green Party say in a post on X that it's "so much for a fresh start with Burnham", with party leader Zack Polanski writing hope isn't brought back by "burning the planet".

Reform UK leader Nigel Farage has again called for an election, saying Burnham can't "be allowed" to make huge changes "without a mandate".

Nick Eardley
Political correspondent

Andy Burnham has spoken to President Trump, the BBC understands.

It was his first call with a foreign leader.

Joe Pike
Political correspondent

Image source, PA Media

Keir Starmer spent some of his final days in office composing hundreds of handwritten thank you letters to every member of the Downing Street team.

His team say he wrote the notes to emphasise his appreciation to colleagues for their hard work and public service.

"He's such a nice man," says one senior ally who is leaving government with Starmer.

Image source, Jeff Overs/BBC

When Andy Burnham launched his bid to become prime minister, he pledged to create a new Downing Street team in Manchester.

He dubbed it "No 10 North", which he said will form part of his vision to redistribute and devolve power across the UK.

"The people of Dundee and Bangor feel just as distant from Holyrood and the Senedd as they do from Westminster," he added.

It will, he said, help to "drive good growth in every postcode", as well as meaning growth is nurtured from the bottom up rather than "from the top down" in Whitehall.

Burnham said that for Wales, Northern Ireland and Scotland there would be new opportunities to extend devolution.

No 10 North is the place that he says will make this achievable in his vision - supporting regions and making "power flow" across the UK.

Today he said it will take power away from Westminster and Whitehall and from there, building a new economy.

While the BBC understands it is now up and running, we do not know the key details about how it will work and what it will be in charge of.

Judith Moritz and Daniel Wittenberg
BBC News

The new “No 10 North” in Manchester is up and running, a source close to Andy Burnham has told the BBC.

Neither the location nor precise details of the operation – which the new prime minister has previously said would help re-balance power across the UK – have so far been confirmed.

There has been speculation as to where in Manchester would become "No 10 North".

One possibility is Heron House, where GCHQ has some of its offices, due to its high level of security clearance. A civil service base that is currently under construction, in the Ancoats area, is a longer term option.

Sarah Smith
North America editor

Image source, Reuters / Getty Images

Donald Trump yesterday welcomed Andy Burnham with a post on social media saying that “the people of Aberdeen are dancing in the streets” because the new PM will open the North Sea for oil drilling.

Although Burham’s plans may not be as extensive as President Trump believes, there are lots of other areas in which the White House will take a keen interest in Andy Burnham’s new government’s policies.

Defence spending is probably the biggest. Despite recent increases, the US wants to see far greater investment in UK defence.

Immigration policy is also an area in which Trump will make his views known to the prime minister along with his staunch opposition to the digital services tax which will hit some big US firms. Trump has threatened big trade tariffs if the tax is not dropped.

There are not yet any firm plans for the two men to meet. When they do, it’s entirely possible that, despite their policy differences, Burnham may be able to strike up a relationship similar to the warm friendship Keir Starmer enjoyed with Trump.

But their relationship fractured over the war in Iran. That ongoing conflict is yet another difficult problem in US / UK relations that Burnham will have to manage.

Image source, Reuters

International leaders have wasted no time in congratulating Andy Burnham for becoming the new prime minister. Here's some of their reactions so far:

• European Commission President Ursula von der Leyen says she looks forward to working with Burnham "to strengthen the EU-UK partnership" for the “prosperity of people on both sides of the Channel”

• French President Emmanuel Macron says he hopes they could "deepen" ties between both countries "in service of our peoples" and give "new momentum" to the relationship between the EU and the UK
• President of Ukraine Volodymyr Zelensky wishes Burnham "every success in addressing the challenges of today", adding: "We are ready to work together in all possible formats."

Alison Holt
Social affairs editor

On his first day as prime minister, Andy Burnham’s father, Roy, is likely to be to the fore of the new PM’s mind.

There was a hug for his mother as he arrived in Downing Street, but dementia means his dad is unable to share the moment with him.

Andy Burnham has said the experience of caring for his father has strengthened his resolve to reform the adult social care system in England.

Now he is installed in No 10, many will want to know what that will mean in practice and where he places it on his list of priorities. He has already said he is willing to expend political capital on modernising this vital system that supports older and disabled people.

He also knows just how difficult that can be after trying to reform social care when he was health and care secretary in 2009.

To pay for it, he planned a levy on people’s estates after they died. It was labelled a death tax by political opponents.

How you fund social care for the future has so far been the stumbling block that has ended other attempts at reform.

And while the PM may be willing to fight the necessary political battles to achieve change, finding the money will be tough.

Image source, PA Media

Prime Minister Andy Burnham was pictured hugging his mum, Eileen, as he arrived in Downing Street earlier today to deliver his first speech since his appointment.

Speaking to The Times ahead of entering Number 10 this week, Burnham indicated that his dad, Roy, doesn't know he is becoming PM, as a result of his Alzheimer's.

He told the paper he saw his father last weekend at his care home with his mother and brothers.

“It’s a family achievement … although he doesn’t know it, it still makes me feel that we’ve kind of done something together," he said.

Katie Hunter
Scotland correspondent

Image source, PA Media

Scotland’s first minister has congratulated Andy Burnham on his appointment as prime minister, describing this as a "significant moment".

John Swinney says Andy Burnham "is correct when he says that Westminster is not working for the vast majority of people" and taking action on the cost of living "must be an absolute priority".

"Just two months ago, the people of Scotland voted for my government and our commitment to support people with the cost of living, ensure easier and quicker access to the NHS, and deliver the right to choose a fresh start with independence," he adds.

"I look forward to constructive conversations with the new prime minister about how we make that happen."

Will Scotland buy Burnham's vision of a 'rewired' Britain?published at 14:02 BST 20 July

14:02 BST 20 July

Glenn Campbell
Scotland political editor

Many in Scottish Labour are optimistic that Andy Burnham can begin to turn around their fortunes after disastrous results in recent elections for the Scottish Parliament.

Even senior SNP figures anticipate some sort of Burnham bounce for Labour in the opinion polls, at least in the short term.

One senior Labour figure said that their new leader would earn the party a "second look" but acknowledged that any prime minister is judged on policy and performance as well as personality.

While his promise to people across the UK to ease cost of living pressures might be welcomed, Burnham’s hopes for taking devolved power "deeper down" is a potential flashpoint with the Scottish government.

It has worked with the UK government on city region funding deals to promote economic growth at that level, but declined to replicate England's system of mayors for city regions like Greater Manchester, where Andy Burnham built his political profile as the "King of the North".

As first minister, John Swinney has made clear that he is perfectly open to working with the PM on areas of shared interest.

But it looks as though any forthcoming co-operation will not include enabling another independence referendum.

We'll bring you the latest comments from John Swinney in our next post.