Burnham Promises Cost-of-Living Relief as New Cabinet Takes Shape
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New Prime Minister Andy Burnham has pledged to “bring back hope” to Britain as he unveiled his first Cabinet and promised swift action to ease pressure on household finances.
Addressing the country after succeeding Sir Keir Starmer in Downing Street, Burnham acknowledged that many people had become frustrated with politics and said the Government needed to improve its ability to deliver meaningful change.
His opening priorities are expected to include a fully funded cost-of-living support package, with measures to reduce energy bills and bus fares due to be announced. More radical proposals, including a possible freeze on private-sector rents, could be considered at a later stage.
The plans will be closely watched by food retailers, suppliers and producers, with continued pressure on household budgets influencing consumer spending across the grocery sector.
Burnham said the immediate support would not remove every financial pressure facing families but would demonstrate the direction of his Government and its determination to provide practical help.
At the centre of his new economic team is John Healey, whose appointment as Chancellor of the Exchequer was one of the biggest surprises of the reshuffle.
The former Defence Secretary, who previously served as a Treasury minister under Gordon Brown, will be responsible for delivering Burnham’s economic programme. This is expected to combine fiscal responsibility with an emphasis on infrastructure investment, reindustrialisation, regional devolution, economic growth and the cost of living.
Burnham indicated that the Government would examine the flexibility available within its existing fiscal rules to support additional infrastructure borrowing. However, he stressed that he intended to take a prudent approach and would not put the economy at unnecessary risk.
Prices for UK ten-year government bonds fell following his comments, reflecting market concern about the possibility of increased borrowing and debt.
Elsewhere in the Cabinet, former Labour leader Ed Miliband has been appointed Foreign Secretary, while Shabana Mahmood remains Home Secretary.
Louise Haigh, a close Burnham ally, becomes First Secretary of State and Chancellor of the Duchy of Lancaster. She will lead an expanded Cabinet Office described as the political engine room of the new administration.
Yvette Cooper moves from the Foreign Office to become Health Secretary, where she will oversee Burnham’s proposed reforms to the social care system. Pat McFadden remains Work and Pensions Secretary, while Angela Rayner returns to her former role as Housing Secretary.
Rachel Reeves, who served as Chancellor under Starmer, has left the Government after reportedly declining an alternative position. Former deputy prime minister David Lammy has also departed the Cabinet.
Burnham said his administration would pursue a new political and economic model, with greater decision-making power transferred from Westminster to communities across the country.
The Prime Minister has also instructed officials to begin work towards ending rough sleeping and has suggested that a future Budget could include income-tax reductions for lower earners, potentially through an increase in the tax-free personal allowance.
Burnham took office on 20 July after being asked by King Charles III to form a new Government. He returned to Parliament as MP for Makerfield in June and was elected Labour leader on 16 July.