Andy Burnham, the new UK prime minister, has appointed John Healey as chancellor in what is being described as an unexpected but strategically safe choice following a bitter behind-the-scenes contest between rival factions. Healey, previously defence secretary, is regarded as diligent and broadly popular within Labour, having spent his career largely avoiding association with any single faction, which allies say leaves him well placed to unite a divided party while reassuring financial markets.

Healey will be responsible for funding Burnham's key policy pledges, including higher defence spending, bringing utilities into public ownership and reducing living costs, while working within constraints similar to those faced by his predecessor Rachel Reeves. Burnham has ruled out raising income tax, VAT or national insurance, and has committed to maintaining the previous government's borrowing rules. Some Labour insiders compare the appointment to Gordon Brown's choice of Alistair Darling, warning that Healey, despite appearing a safe pair of hands, may prove more independently minded than Burnham expects.