Burnham Forms Cabinet and Cuts VAT on Electricity as First Act in Office
London, 21 July 2026
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Summary
Andy Burnham is the new British Prime Minister as of Monday. On his very first day in office, he formed his cabinet and announced in the morning a cut in…
London, 21 July 2026
Andy Burnham is the new British Prime Minister as of Monday. On his very first day in office, he formed his cabinet and announced in the morning a cut in value-added tax on private electricity bills.
Government Formation on the First Day in Office
Andy Burnham, 56, has been the new British Prime Minister since Monday. He succeeds Keir Starmer, who announced his resignation in June. On the same day, Burnham was tasked by King Charles III with forming a government. As a statement from Downing Street indicated, he held his first cabinet meeting at midday, according to the BBC. An initial measure had already been announced in the early morning.
This first act in office targets the cost of living of the British population head-on. By cutting value-added tax on electricity bills, private households are to be relieved. Burnham had already assured Britons in advance of support in the face of high living costs. He had repeatedly stressed that the new government must give people the feeling that help is on the way, government circles said.
First Act in Office: Relief on Electricity
In his address to the ministers, Burnham said, according to participants, that ministers must form a government that commits itself to the issue of the cost of living and gives people the feeling that help is coming. This programmatic line was also emphasized at Downing Street, where it was said the focus lies on the reindustrialization of the entire country as well as on defence and security.
As the new Chancellor of the Exchequer, Burnham appointed 66-year-old John Healey. Healey has been a Member of Parliament since 1997 and previously served as Chancellor under Tony Blair. As recently as June, Healey had left the Ministry of Defence in a dispute because, in his view, too little money had been committed to the defence investment plan. Reacting to his appointment, Healey said it was „the greatest honour" and announced: „Together we will build a new economy, create new hope and advance the interests of working people in this country".
John Healey Becomes Chancellor of the Exchequer
John Healey succeeds Rachel Reeves, who had been the country's first female Chancellor since Starmer took office in 2024. Reeves leaves the cabinet as a loyal supporter of her predecessor. According to reports, she declined another cabinet post. Initially, the former Energy Secretary Ed Miliband had been tipped for the position, followed by the former Home Secretary Shabana Mahmood. In the end, the choice fell on Healey.
As the new Foreign Secretary, Burnham appointed Ed Miliband, who had served as Energy Secretary under Starmer and in that role had driven forward the establishment of the state-owned energy company Great British Energy as well as blocked new drilling in the North Sea. Ed Miliband succeeds Yvette Cooper. As foreign policy priorities, he names the continued support for Ukraine, relations with the USA, and a lasting peace between Israel and Palestine. In 2015, he had led Labour into an election defeat as party leader; his older brother David Miliband had previously served as Foreign Secretary in Gordon Brown's cabinet.
Ed Miliband Moves to the Foreign Office
At the Foreign Office, Alex Norris, previously Minister of State for Border Security and Asylum, takes over day-to-day operations. Ed Miliband himself was considered in party circles the favourite for the finance portfolio but is now moving to the prestigious post of Foreign Secretary. This is accompanied by a clear course change in British foreign policy, which already prompted initial reactions in London.
One of the most striking personnel decisions is the appointment of 38-year-old Louise Haigh as First Secretary of State. The office is being filled for the first time since September 2021. Haigh had joined Burnham's camp in May of this year and supported him in his return to Parliament and to the party leadership. In 2024, Starmer had dismissed her as Transport Secretary because she had failed to disclose a prior fraud conviction. For the 38-year-old Haigh, this marks a return to cabinet. Background: in her twenties, she had reported a work mobile phone as stolen and had not informed the police when it resurfaced.
Louise Haigh and David Lammy: Comeback and Dismissal
David Lammy, hitherto Deputy Prime Minister and Justice Secretary, and previously also Foreign Secretary, is being dismissed from the cabinet entirely. Lammy and the former Chancellor of the Exchequer Rachel Reeves no longer play a major role under the new government. With this, Burnham enforces a clear break with the Starmer era in the leadership team. Angela Rayner, who had to resign as Deputy Prime Minister over a tax affair and has since been cleared of the suspicion of tax evasion, is also returning as Housing Secretary. She had previously held this office under Keir Starmer from 2024 to 2025.
At the Defence Ministry, there is a rapid change: Wes Streeting takes over the ministry from Dan Jarvis. Jarvis had inherited the ministry only six weeks earlier from Healey and, with this brief tenure, ranks among the shortest-serving Defence Secretaries in British history. Streeting was Health Secretary until May of this year and resigned because he had lost confidence in Starmer. He subsequently challenged Starmer as Prime Minister, failed, and thereby triggered the resignation process of Starmer. Streeting had also briefly rivalled Burnham as a counter-candidate for the party leadership but withdrew after Burnham entered Parliament.
Streeting Takes Over the Ministry of Defence
In a statement on the platform X, Streeting announced: „We will ensure that our armed forces have the necessary resources, and stand resolutely by our international allies, especially Ukraine." Yvette Cooper, previously head of the Foreign Office, was appointed Health Secretary. Shabana Mahmood remains Home Secretary and is thus the only one of the "Great Offices of State" to retain her post unchanged. In 2024, she led Labour's election campaign, after which she pushed through, as Justice Secretary, a programme of early prisoner release to relieve overcrowded prisons.
The new British cabinet is made up of twelve women and eleven men, including the Prime Minister. It is the first time that more women than men have been appointed. In total, the cabinet comprises 23 members including the Prime Minister. This number corresponds to the size of the previous Starmer cabinet.
Cabinet with a Female Majority
Further plans include a tougher course on migration policy. In future, foreign offenders and illegally immigrated migrants should no longer be able to invoke distant family relationships in order to prevent deportation. In addition, the Prime Minister's Office announced in advance that one of Burnham's first official acts would be to halt a plan to introduce digital IDs for all workers to combat illegal immigration. A cross-party parliamentary committee had previously described this plan as a "Fiasko".
Migration Policy and Digital ID Plans
One of his first official acts as Prime Minister was a phone call with US President Donald Trump. Trump had previously expressed doubts about Burnham, calling him a „small-town mayor" and „extremely liberal". In a subsequent post on the platform Truth Social, Trump wrote that the conversation had gone „very well", and added: „The Prime Minister has a great task ahead of him, but he will master it, and of course the USA will stand by him!". According to Trump, topics such as North Sea oil, trade, the military alliance, mine clearance in the Strait of Hormuz, and other issues were discussed; a personal meeting is planned for the near future.
Trump also expressed the hope that Burnham, as Prime Minister, would once again allow oil and gas drilling in the North Sea. This expectation stands in direct contradiction to the previous decisions of the former Energy Secretary Ed Miliband, who had blocked new drilling in the North Sea. How Burnham intends to resolve this conflict remained unclear at first.
Phone Call with Donald Trump
A Burnham spokesperson said the Prime Minister hoped to be able to show the US President what Manchester has to offer on a future visit, referring to Burnham's former role as Mayor of Greater Manchester. The news was broadcast on 21.07.2026 on the programme Deutschlandfunk.
Questions & Answers
Who is Andy Burnham and how did he become Prime Minister?
Andy Burnham has been the new British Prime Minister since Monday, 21 July 2026; he succeeds Keir Starmer, who announced his resignation in June, and was tasked by King Charles III with forming a government on the same day.
What first measure did the new government announce?
On the morning of his first cabinet meeting, Burnham announced a cut in value-added tax on private electricity bills in order to relieve the cost of living of British households.
Who became Chancellor of the Exchequer and who Foreign Secretary?
John Healey, previously Chancellor under Tony Blair, became Chancellor of the Exchequer; Ed Miliband, previously Energy Secretary, moved to the Foreign Office as Foreign Secretary, succeeding Yvette Cooper.
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