Andy Burnham reshuffles UK cabinet, names John Healey finance chief and speaks with Trump and Merz on first day

Cabinet overhaul on day one

New British Prime Minister Andy Burnham, 56, carried out a sweeping cabinet reshuffle hours after King Charles III invited him to form a government on the morning of 20 July 2026. The most surprising appointment was former defence secretary John Healey as Chancellor of the Exchequer. Healey had quit the cabinet in June over what he considered an insufficient army budget under Keir Starmer, a resignation that further weakened the then-prime minister. The post had been expected by many observers to go to Home Secretary Shabana Mahmood.

It is the greatest honour. Together we will build a new economy, create new hope and advance the interests of working people in this country.

Ed Miliband, previously energy minister, took over as Foreign Secretary. Yvette Cooper moved from the Foreign Office to Health. Shabana Mahmood remained Home Secretary. Later in the evening and overnight, further names were confirmed: Wes Streeting, a one-time rival for the party leadership who stepped aside after Burnham entered parliament, became Defence Secretary. Alex Norris took Justice, Angela Eagle Environment, and Miatta Fahnbulleh Energy.

Starmer allies exit

Several figures closely associated with former leader Keir Starmer lost their roles. Rachel Reeves departed as Chancellor, and David Lammy, once deputy prime minister and justice secretary, was excluded. "I would have been proud to continue serving in the cabinet. But a new prime minister has the right to assemble his own team," Lammy told the PA news agency.

I would have been proud to continue serving in the cabinet. But a new prime minister has the right to assemble his own team.

Other appointments included Angela Rayner as Housing Minister, Jonathan Reynolds as Business Secretary, Lucy Powell as Education Secretary, and Anneliese Midgley as Labour Party parliamentary group leader. Lisa Nandy remained Culture Secretary.

Phone calls with Trump, Merz and Zelenskyy

One of Burnham's first official acts was a telephone call with US President Donald Trump. A Downing Street spokesman said the prime minister had expressed the hope of "showing the president what Manchester has to offer on a future visit," a reference to Burnham's previous role as mayor of Greater Manchester. Burnham then spoke with German Chancellor Friedrich Merz. The two leaders affirmed the Kensington Treaty, a bilateral friendship accord Merz signed with Starmer a year earlier, and pledged to continue comprehensive support for Ukraine and to increase pressure on Russia. Burnham also spoke with Ukrainian President Volodymyr Zelenskyy.

Both expressed the wish to continue cooperation between the two countries.

German Foreign Minister Johann Wadephul congratulated his new counterpart Ed Miliband and said he had already received signals that the E3 format (Germany, France, United Kingdom) would continue seamlessly under the new government.

Ten-year plan and next steps

In his inaugural speech outside Downing Street, Burnham announced a "ten-year plan" with ambitious targets including an education system reform, industrial strengthening and social housing construction. A package of measures addressing the high cost of living is to be presented on Tuesday, 22 July. Burnham said the country must show the world it can "regain stability," and he promised to create "a new political model" and "build a new economy."

Key ministers at a glance

The reshuffle charted a clear break from the Starmer era. The former prime minister's inner circle was systematically removed while figures who had clashed with Starmer or who represent different wings of the party were elevated. Wes Streeting, from the party's right wing, had resigned as Health Secretary in May citing lost confidence in Starmer and had announced plans to challenge him. After Starmer's fall, Streeting withdrew from the race and backed Burnham, clearing the path for an uncontested leadership transition.