UK PM Burnham sacks Chancellor Reeves in sweeping cabinet clearout
Andy Burnham has ousted former chancellor Rachel Reeves and a string of other Starmer-era ministers, creating uncertainty over the direction of the UK economy and its trade policy.
Prime Minister Andy Burnham has unveiled his first cabinet, delivering a brutal clearout of allies aligned with his predecessor, Keir Starmer. The most significant departure is Rachel Reeves, the UK’s first female chancellor, who was removed from the Treasury and declined an alternative senior role.
For European investors and businesses, Reeves's exit marks a sudden end to the strict fiscal discipline that defined the UK's economic policy for the past two years. Her tenure was marked by self-imposed spending curbs, though business critics blamed her employer national insurance hike for stifling the jobs market and growth. Reeves defended her record upon leaving, stating: "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."
The upheaval extends to the Department for Business, where Peter Kyle has been sacked. Kyle was a central figure in critical trade and tech negotiations with the US and China. His departure, alongside the expected folding of the science secretary role into the business department, signals a potential shift in how London engages with global tech giants and international partners.
Burnham also removed David Lammy, who had served as foreign secretary and then deputy prime minister, and Darren Jones, the chief secretary to the prime minister who was central to Whitehall spending negotiations. "I would have been proud to continue serving in cabinet," Lammy wrote on X. "But a new prime minister is entitled to build his own team, and I wish Andy Burnham and the new cabinet every success."
The dismissals stretched across the government to include veteran figures like Hilary Benn at the Northern Ireland Office and Richard Hermer, the attorney general. While Burnham had promised an inclusive team from all wings of the Labour party, the removal of Starmer's closest allies leaves European capitals waiting to see who will now take the reins of the UK's economic and diplomatic machinery.
