News Item: All Change in Downing Street, Across Whitehall and Manchester
New UK Prime Minister, Andy Burnham MP carried out a major reshuffle of the Cabinet and Minister of State-level roles following his appointment by HM The King on 20th July. Around half the former Cabinet have left office, others have moved roles, while a significant number have remained in post. Many of the junior ministers have stayed in their jobs, probably to provide continuity.
The latest list government ministers (subject to likely further announcements) can be found here.
Immediate priorities have focused on the cost of living and adherence to the fiscal rules introduced by the Starmer Administration in 2024. The new Chancellor, John Healey is an experienced senior minister and has previously held office in the Treasury. His appointment was a surprise to many observers and the market appears calmed by his moving into No.11.
Initial measures to help with cost of living pressures are:
It is anticipated that a major fiscal event (Budget) will take place in October this year.
There have also been some changes to the so-called ‘machinery of government’ principally the shift of responsibilities from the now defunct Department of Science, Innovation and Technology, mostly to an expanded Department of Business, Innovation, Science and Trade (or DBIST) headed by the returning Secretary of State Jonathan Reynolds. Artificial Intelligence (AI) now has a dedicated cabinet-attending minister.
The Cabinet Office is remodelled to form part of the new Office for the PM and Cabinet (OPMC) headed by Louise Haigh (the former transport secretary and now effectively no.2 in the government). Many of the civil service employment-related functions formerly with the Cabinet Office will be hived up off and managed by the most senior civil servant, freeing up capacity for delivering PM Burnham priorities. More details are available here.
There may be other changes announced both to personnel and structures. The creation of No.10 North based in Manchester (under direct political leadership of Louise Haigh) is a significant change and likely to result in driving further devolution and local growth measures. These include functions shifted from the Housing, Communities & Local Government Department (which is once again headed by Angela Rayner) and the Treasury.
A busy week in the political world and much to digest. However, it is worth remembering that the same challenges remain around a weak economy, prolonged low growth, high cost of living pressures and rising global instability. In addition, Prime Minister Burnham remains a largely unknown and untested leader to many in the country (and to many of his 400 plus MPs). This is largely the result of not having a national contest to replace Keir Starmer.
The Labour Party will need careful management after a bruising reshuffle which saw many top Starmer loyalists losing their ministerial jobs.
Image Source: UK Parliament, Licence.