Andy Burnham has begun appointing his first Cabinet after being confirmed as UK prime minister, with John Healey named chancellor in the initial announcement of his reshuffle. The choice marks a significant shift, given Healey resigned as defence secretary last month in protest at Keir Starmer's defence investment plan, arguing it fell short of what was needed for national security. His promotion to the Treasury signals Burnham's intent to install experienced figures who can pursue his stated priorities of fiscal responsibility, re-industrialisation, devolution and tackling the cost of living crisis.

As chancellor, Healey will now be responsible for finding the funding to raise UK military spending to 3% of GDP by 2030, a target he previously said was unachievable under Starmer's plans, and may consider mechanisms such as defence bonds, an idea he championed while at the Ministry of Defence. The appointment is the first of several reshuffle moves reported alongside Burnham's Cabinet formation, which also saw Ed Miliband named foreign secretary and Shabana Mahmood remain as home secretary, while ministers including Rachel Reeves, David Lammy, Peter Kyle and Steve Reed left government.