Burnham's Cabinet Chaos: Reeves Sacked, Lammy Targeted

Cabinet Reorganization Begins Under New Prime Minister

The new Prime Minister, Andy Burnham, has initiated a significant reshuffling of his Cabinet, marking the start of a dramatic shift in the Labour Government's leadership. This move follows Burnham's first speech to the country, where he acknowledged that the government "needs to be better." The changes have seen the removal of several key figures, including Rachel Reeves and other loyalists of former leader Keir Starmer.

Rachel Reeves, the former Chancellor, has been removed from her position, with reports indicating she has declined any further roles within the government. Other notable departures include David Lammy, Steve Reed, Peter Kyle, Liz Kendall, Nick Thomas-Symonds, and Attorney General Lord Hermer. Darren Jones also received news of his dismissal via phone call. Hilary Benn and Jo Stevens, who held the positions of Northern Ireland Secretary and Welsh Secretary respectively, as well as international development minister Baroness Chapman, have also been ousted.

Steve Reed expressed disappointment at his departure from the Housing Secretary role, stating that he hoped those who had not shown loyalty to Keir Starmer would now demonstrate it to Burnham. Former Deputy PM David Lammy lamented the loss of an opportunity to continue serving in the Cabinet.

Key Figures and Potential Appointments

The focus is now on whether Ed Miliband will be appointed as Chancellor. The Left has been pushing for this appointment, despite concerns from businesses and moderates. There has been speculation that Shabana Mahmood may take the role instead, which has led to some market calmness. However, any unexpected appointments could trigger a negative market reaction.

Interest rates on 30-year gilts have increased slightly, and the value of the pound has dipped against the US dollar. John Healey, the former defence secretary, has been seen in Downing Street, suggesting potential appointments are underway.

Ed Miliband hinted at leaving the Department for Energy and Net Zero in a speech to staff, though he did not confirm Burnham’s decisions. The fates of prominent figures such as Angela Rayner, Wes Streeting, and Yvette Cooper remain uncertain.

Policy Shifts and Economic Plans

Burnham’s reshuffling signals a move towards more left-leaning policies. During his address at Downing Street, he emphasized the need for stronger public control over services and a ten-year plan for reindustrialization. He criticized the direction Britain took since Margaret Thatcher was Prime Minister.

Burnham outlined plans to address the cost of living crisis, hinting at measures such as rent controls and energy bill curbs. However, landlords have warned that capping rents could reduce property availability on the market. He also mentioned the possibility of reintroducing a 'death tax' to fund social care reforms and potentially a 50p top rate of tax, despite previous commitments in the Labour manifesto.

International Reactions and Domestic Challenges

Internationally, the EU has welcomed Burnham, who has previously supported rejoining the bloc. He has also had his first call with Donald Trump, inviting him to visit Manchester. Burnham revealed that his Alzheimer’s-affected father is unaware of his new role as PM. Eco-tycoon Dale Vince was spotted in Downing Street amid uncertainty about North Sea drilling policies.

Burnham has hinted at ending the freeze on the basic rate tax threshold earlier than planned but has not provided details on funding. He will become the first openly Catholic PM, with arrangements in place to protect the Church of England. Loudspeakers have been banned near Downing Street after protests disrupted Sir Keir's resignation speech.

Transition and Leadership

Burnham was invited to form a government at an audience with the King, accompanied by his wife Marie-France van Heel. In his seven-minute speech, he outlined a ten-year plan for Britain, emphasizing collaboration and problem-solving over political point-scoring. He highlighted the need to reindustrialize and bring life's essentials back under public control.

Burnham addressed reporters, mentioning that measures to help with the cost of living, such as bus fares, energy bills, or rent freezes, are under consideration. He stressed that no final decisions had been made yet, and more announcements would follow.

Farewell of Sir Keir Starmer

Sir Keir Starmer, who served as Prime Minister for two years, insisted he was not a failure despite the short tenure. He thanked his family and close allies, including David Lammy and Rachel Reeves, who watched his farewell address. Starmer claimed the country is now stronger and fairer, citing improvements in the economy, public services, and international reputation.

The transition came just a month after Burnham returned to Westminster following his victory in the Makerfield by-election. He was installed by Labour MPs in a 'coronation' without a formal vote by activists or detailed policy announcements.

Future Challenges and Priorities

Burnham has committed to devolving power away from Westminster and scrapping Sir Keir's digital ID programme to focus on the cost of living. He has spoken about the importance of making people feel better and addressing complaints about frozen tax thresholds.

Questions remain about how Burnham will fund his initiatives, especially after supporting a 'land tax' and criticizing Thatcherite reforms. The weekend was marked by confusion over potential new oil and gas drilling in the North Sea, with confirmation that new licenses will not be issued.

Burnham also faces decisions regarding the temporary nationalization of Thames Water, which is struggling with a £20 billion debt. He has expressed support for greater public control of essential services, with creditors willing to discuss a rescue deal.

Another priority is reforming social care, which Burnham has stated he wishes to 'expend political capital' on. Liberal Democrat leader Sir Ed Davey has urged Burnham to engage with other parties to solve the social care crisis, while Kemi Badenoch has called for tax cuts and new drilling policies.