John Healey has been named Chancellor, Ed Miliband is Foreign Secretary and Shabana Mahmood remains Home Secretary, as Andy Burnham purged the Cabinet of loyalists of his predecessor Sir Keir Starmer.
David Lammy, Rachel Reeves and Steve Reed were among the high-profile Cabinet ministers to be shown the door by the new Prime Minister.
Mr Healey’s posting to the top of the Treasury – where he replaces Ms Reeves – came as a surprise to Westminster.
Mr Healey, who recently resigned as Sir Keir’s defence secretary in a row over military funding, is a stalwart of Labour’s frontbench and seen as a safe pair of hands.
He said it was “the greatest privilege” to be given the crucial job, adding: “Together, we will build a new economy, build new hope and advance the working people of this country. ”
Fellow Labour big beast Mr Miliband was moved from the energy department to lead the Foreign Office, while Ms Mahmood kept her Home Office job.
John Healey has been appointed as Chancellor of the Exchequer @hmtreasury. pic.twitter.com/QPa3uK0tON
— UK Prime Minister (@10DowningStreet) July 20, 2026
There had been speculation Ms Mahmood could be handed the chancellorship, but she was eager to remain Home Secretary and see through the controversial changes to the asylum system she has brought in.
Ms Mahmood tweeted that it was “an honour to remain as Home Secretary,” adding: “I may be biased, but it’s the best job in the business.”
“We have begun the work of major reform, to make our streets safer and our immigration system fair for all. Now let’s finish the job.”
Louise Haigh, who left her post as transport secretary under Sir Keir in 2024 and has been planning Mr Burnham’s ascent to power since last year, was named First Secretary of State, Chancellor of the Duchy of Lancaster and minister for the Cabinet Office.
Culture Secretary Lisa Nandy has walked into No 10, indicating she could be in line for a senior job, as did Work and Pensions Secretary Pat McFadden, Chief Whip Jonathan Reynolds, Education Secretary Bridget Phillipson, and Yvette Cooper, who has been supplanted by Mr Miliband at the Foreign Office.
Angela Rayner, who has been cleared over her tax affairs since she quit as Sir Keir’s deputy prime minister and from the Cabinet, also went into Downing Street.
And so did prominent Burnham backers Lucy Powell and Anneliese Midgley, who – along with Ms Haigh – was instrumental in Mr Burnham’s campaign to win the Makerfield by-election and return to Parliament to topple Sir Keir.
Ms Reeves lost her Treasury brief and is understood to have turned down an offer from Mr Burnham for another senior role in Government, with her allies declining to say what that alternative job was.
She wrote on X that it had been “the privilege of my life” to serve as the first female chancellor.
“The economy today is stronger, fairer and more resilient because of the choices we have taken as a Labour Government over the past two years.
“I wish the very best of luck to my successor, Andy and his Cabinet.
“You have my full support and I will continue to play my part in helping this Labour Government deliver the change the country needs.”
Mr Lammy, Sir Keir’s deputy prime minister and justice secretary, and previously foreign secretary, announced he was leaving Government on social media, while Mr Reed, seen as an arch-loyalist to Sir Keir, said he was “disappointed to be leaving Government now” in a letter to Mr Burnham.
Mr Reed, who has served as environment secretary and housing secretary since the general election in 2024, said in a rebuke to the new Prime Minister: “Keir Starmer showed loyalty to me by appointing me to his Cabinet.
“I make no apology for returning that loyalty.
“It’s what is expected of functioning teams, and I hope those who did not show loyalty to Keir will now show it to you.”
Tottenham MP Mr Lammy said he “would have been proud to continue serving in Cabinet. But a new Prime Minister is entitled to build his own team”.
Peter Kyle, who was business secretary, former technology secretary Liz Kendall, and Lord Hermer, the now ex-attorney general, also announced they were leaving Government.
Jo Stevens lost her job as secretary of state for Wales and Darren Jones, who served as Sir Keir’s chief secretary, said Mr Burnham told him he “won’t be a part of his new cabinet”.
Hilary Benn, who served as Northern Ireland secretary, is gone, as is Foreign Office minister Baroness Jenny Chapman of Darlington, and EU relations minister and paymaster general Nick Thomas-Symonds.
Several junior ministers announced they were leaving Government earlier on Monday.
Prisons minister Lord James Timpson was the first to announce he had resigned, and was shortly followed by Lord Patrick Vallance, a science minister.
Dave Penman, general secretary of the FDA union, which represents senior civil servants, warned of “political turmoil” arising from the reshuffle.
He said on X: “The time it takes to get ministers up to speed. The changing priorities and need to go over issues from scratch that had taken months to get close to a decision.
“Less than 12 months ago over 50% of ministers left govt or changed portfolio. Now there’ll be change again with the potential for Machinery of Govt changes thrown in for good measure.”