Andy Burnham just carried out a brutal Cabinet clearout – this is why we should be worried.VA
ANALYSIS – STEPH SPYRO: Andy Burnham made some shock appointments.
Andy Burnham giving his first speech as Prime Minister (Image: Getty)
Brace for more tax hikes as Andy Burnham gets down to business with his new Cabinet following a ruthless clear-out of Sir Keir Starmer loyalists.
The Prime Minister declared from Downing Street that ending rough sleeping would be his first priority after entering No 10 on Monday. But before rolling up his sleeves, he settled scores by removing some of the biggest names associated with his predecessor.
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Mr Burnham, wearing a suit and tie for the occasion, wasted no time axing Rachel Reeves, Steve Reed and Darren Jones.
While those departures had been widely expected, Westminster was stunned when former Defence Secretary John Healey was handed the keys to the Treasury.
Mr Healey dramatically quit the Cabinet last month after clashing with Sir Keir over defence funding, just before the crunch Makerfield by-election that cemented Burnham’s victory at No 10.
In his resignation letter, he argued Britain must increase defence spending to 3% of GDP by 2030.
As Chancellor, he now faces the challenge of finding the billions needed to deliver that pledge while funding Burnham’s wider domestic agenda.
He beat the names on everyone’s lips, Ed Miliband and Shabana Mahmood, for the gig. Although there is one woman in a Great Office of State – in the form of Ms Mahmood, who retained her role as Home Secretary – Mr Burnham has surrounded himself with some of Labour’s top female team. He knows it was a group of women who helped his “Keir coup” happen – and it is the same women who can ultimately bring him down.
Louise Haigh, who resigned as Transport Secretary after it emerged she pleaded guilty to a fraud offence a decade ago, will be Chancellor of the Duchy of Lancaster. She was also handed the rare role of first secretary of state, an appointment previously held by George Osborne, William Hague and disgraced peer Lord Peter Mandelson.
This is a likely nod of gratitude to her taking the reins of the Makerfield by-election campaign, which got Burnham back as an MP.
Meanwhile, Angela Rayner returned to her old job as Secretary of State for Housing, Communities and Local Government less than a year after quitting in a row over unpaid stamp duty. The irony is there for all to see.
Bridget Phillipson will remain a member of the Cabinet as Minister for Women and Equalities in Andy Burnham’s Government, but is no longer the Education Secretary. This could be a clever move by a PM who learnt from the accusations leveraged against Sir Keir about Labour having a “women problem”.
What can the public expect from this new-look team?
Several members of Burnham’s new Cabinet have argued for higher taxes in the past, while the Prime Minister himself has refused to rule out a wealth tax, saying Britain may eventually have “to ask for a little more”.
With Mr Healey committed to significantly higher defence spending and Mr Burnham pursuing an ambitious domestic agenda, the pressure to find billions in extra revenue is only likely to intensify.
The make-up of the new Cabinet points in one direction: difficult spending decisions – and potentially higher taxes – could be coming sooner rather than later.
