Andy Burnham has taken over as Prime Minister and Labour leader, immediately launching a sweeping Cabinet reshuffle. Rachel Reeves has been sacked as Chancellor, alongside several Keir Starmer loyalists including David Lammy, Steve Reed and Peter Kyle, while Ed Miliband and Shabana Mahmood are both being tipped as possible replacements for the Treasury role, marking a clear leftward shift in the party's direction.

Within hours of taking power, Burnham signalled a break from his predecessor's fiscal approach, backing a new "death tax" to fund social care, citing his own father's experience with Alzheimer's as evidence the current system is "broken". He also indicated the top rate of income tax could return to 50p, arguing that support for households struggling with the cost of living should be funded by wealthier earners. The appointments and policy signals point to a Cabinet reshaped around Labour's left, with further announcements expected as Burnham completes his top team.