THU 01 OCT   10:45:59

REEVES SACKED AS CHANCELLOR IN BURNHAM CABINET RESHUFFLE

MON 20 JUL 2026 UK POLITICS

Rachel Reeves has been removed as Chancellor of the Exchequer by new Prime Minister Andy Burnham in a major cabinet reshuffle. Deputy Prime Minister David Lammy, Housing Secretary Steve Reed and Business and Trade Secretary Peter Kyle have also left their posts. Ms Reeves confirmed her departure in a statement, saying it had been "the privilege of my life to serve as Chancellor" and that "the economy today is stronger, fairer and more resilient" as a result of Labour's decisions over the past two years. Mr Lammy stated he was "immensely proud" of what had been achieved under Sir Keir Starmer's leadership.

Mr Burnham officially became Prime Minister after "kissing hands" with King Charles and accepting the invitation to form a government. In his first speech from Downing Street, he pledged to bring "life's essentials back under stronger public control" to make them more affordable and committed to ending rough sleeping. The reshuffle removes several figures closely associated with the previous administration, including multiple described as Keir Starmer loyalists. The timing follows Labour's general election victory two years prior.

The scale of the changes marks a significant transition in the party's leadership and direction. Mr Burnham's reshaping of the top team represents his opening moves as Prime Minister to establish his own cabinet structure and priorities. The departures of multiple senior ministers suggest a deliberate break from aspects of the previous government's approach, though Mr Lammy and Ms Reeves both indicated continued support for the Labour government's objectives going forward.

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