Andy Burnham has made a convicted fraudster his Deputy Prime Minister and appointed a tax dodger as housing secretary in his first cabinet.
Burnham appointed his Cabinet yesterday (Image: Getty)
Andy Burnham’s new Cabinet has come under fire from rivals who have lashed out at the appointment of a convicted fraudster and a tax dodger to top posts. It follows a day of jostling in Westminster yesterday, which saw Rachel Reeves removed as Chancellor, and former Defence Secretary John Healey taking the post. But it was the appointments of Louise Haigh and Angela Rayner that have drawn the sharpest attention.
Commenting online, Mr Burnham’s Conservative Party rivals said he had just made a “convicted fraudster his Deputy Prime Minister” in a pointed remark about Ms Haigh having a conviction for fraud by false representation. She previously resigned from the Government over the issue. They also took aim at Angela Rayner becoming Housing Secretary despite being “forced to resign for underpaying property tax.”
The news comes as this morning, Andy Burnham announced a VAT cut to help people with the cost-of-living crisis ahead of chairing his first Cabinet meeting after he took office as Prime Minister. The new premier promised to provide early “breathing space” for households struggling with the cost of living as he stood on the steps of No 10. He and his new Chancellor John Healey announced that VAT will be removed from domestic electricity bills from October 1.
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Burnham tells Scotland it’s a no on another ref
Andy Burnham has told the leaders of Scotland, Wales and Northern Ireland he is “focused on practical measures, not constitutional changes like further referendums”.
A Downing Street spokesperson said Mr Burnham on Tuesday had calls with Scottish First Minister John Swinney, Welsh First Minister Rhun ap Iorwerth, and Michelle O’Neill and Emma Little-Pengelly, the First Minister and Deputy First Minister of Northern Ireland.
Labour in third place in polls
The scale of the task facing Andy Burnham as he tries to revive support for the Labour party is laid bare in the latest YouGov polling:
Reform UK: 23% (-1 from 12-13 July)
Conservatives: 21% (+2)
Labour: 20% (+1)
Greens: 14% (-1)
Lib Dems: 12% (-1)
Restore Britain: 3% (=)
There will be euphoria at Tory HQ if they can get to first place over the summer. But Andy Burnham will hope his risky, headline-making announcement on VAT cuts on electricity bills will ensure he enjoys a true honeymoon.
Former British Army head ‘disappointed’ Wes Streeting given top defence job
A former British Army head has said he is “disappointed” that Wes Streeting has been made defence secretary.
Lord Dannatt told Times Radio: “A new defence secretary has a lot to learn, the defence portfolio is one of the more complicated ones in government and as far as I’m aware Wes Streeting has got no background in defence, no background in the military.
“So he’s going to have to do an awful lot of listening and learning over the next few days and weeks before he can start to make a contribution.
“Now, the professionals in the Ministry of Defence, the service chiefs, the permanent secretary, they all know their stuff, and they will get on with the day-to-day business.
“So, frankly, if you’re asking me the question, I’m disappointed that Wes Streeting was appointed to defence secretary, I think there are other people who have a longer background in defence – Dan Jarvis, who’s only just been appointed, I think was a good appointment after John Healey, personally, I’m disappointed that he’s not remained in the job.
“But if Wes Streeting is prepared to listen, to learn, then there’s no reason why, over time, he can’t be an effective defence secretary – but he’s got to remember that the man in Number 11 actually knows the stuff about defence, and there’s no point trying to pull the wool over his eyes.”
(Image: Getty)
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Scotland’s First Minister invites Burnham ‘north of the border’
Scotland’s First Minister has invited Andy Burnham to visit north of the border “at the earliest opportunity” in a call on Tuesday.
John Swinney spoke to the new Prime Minister over the phone on Tuesday morning, congratulating him on his appointment.
And according to a Scottish Government spokesman, Mr Swinney invited Mr Burnham to his official residence at Bute House.
“In a telephone call this morning, the First Minister congratulated the new Prime Minister on his appointment,” the spokesman said.
“He set out his commitment to both governments working constructively together to address the cost-of-living crisis and to lower energy bills.
“The First Minister set out the majority within the Scottish Parliament for the future of Scotland to be decided by the people of Scotland and looked forward to a constructive dialogue on this issue.
“The First Minister also extended an invitation to host the Prime Minister at Bute House at the earliest opportunity.”
John Swinney (Image: Getty)
Healey appointment as Chancellor declared ‘a masterstroke’
A former British Army head has said appointing John Healey to Chancellor is “a masterstroke” and makes him “poacher turned gamekeeper”.
Lord Dannatt told Times Radio: “John Healey, as we all know, resigned not that long ago, having said that the previous prime minister was unable to produce the funding that defence needed – and the previous chancellor was unwilling – so now he is the one behind the desk in Number 11, and has really got to answer his own question.
“Now, it won’t be an easy question to answer, but there’s no one that knows better than John Healey just what defence needs, and I think he’ll give it his best shot possible to try and find the money that he knows the nation needs to keep this country safe, and that we play our collective part in the collective security of Europe.
“So in a sense it’s very much a poacher turned gamekeeper, and physician heal thyself.”
John Healey (Image: Getty)
Former head British Army breaks silence on Russia warship threat
“It’s not entirely by happenstance” that a Russian warship carried out a live fire artillery exercise off Plymouth on the same day the UK got a new prime minister, a former British Army head has said.
Lord Dannatt, chief of the general staff between 2006 and 2009, told Times Radio: “I think it’s another illustration of the aggressive instinct shown by Vladimir Putin, of course most clearly demonstrated by his attack on Ukraine.
“But he wants to demonstrate that Russia’s got muscles that it can flex, and it’s not entirely by happenstance that that Russian warship chose to carry out a live fire exercise on the same day that Andy Burnham became prime minister.
“This is an indication from the Kremlin that ‘we’re here and we’re powerful, we’re strong, and what are you going to do about it?’ So it’s a challenge.”
Minister defends Cabinet, with majority of MPs based in north of England
Business Secretary Jonathan Reynolds defended the make-up of the Cabinet, which has a majority of members based in the north of England.
Asked if there was a risk of a north-south divide, he told BBC Radio 4’s Today: “No, there isn’t.
“I don’t want to get touchy about it, but I can’t remember previous occasions where people have objected to too many people from a different part of the country being in there.”
Mr Reynolds, MP for Stalybridge and Hyde in Greater Manchester, said: “I think there’s the same number of cabinet ministers from Greater Manchester there was at the start of this Labour government in 2024.
“The Prime Minister has changed, but the the rest of the Cabinet is broadly the same in terms of those names.
“So I don’t accept a bias for any part of the country. I do accept very much that this is a Prime Minister determined to make the economy work, the country work, for every single part of the UK.”
Sacked Starmer minister exposes huge problem with Andy Burnham’s new plan
A Keir Starmer ally sacked by Andy Burnham has warned the new Prime Minister that he may already have a funding black hole. Former chief secretary to the prime minister Darren Jones said Mr
Tories take aim at potential blackhole in Burnham VAT pledge
Shadow defence secretary James Cartlidge has said new policies have “got to last more than a few minutes” of scrutiny, during a discussion on the Prime Minister’s announcement that new VAT cuts will be partly funded by scrapping Sir Keir Starmer’s digital ID project.
Mr Cartlidge’s comments came after former chief secretary to the prime minister Darren Jones posted on X that it is “good news that VAT will be cut on electricity bills” but “the DigitalID program was unfunded”.
The shadow defence secretary told Times Radio that the OBR (Office for Budget Responsibility) also said last year that the digital ID card scheme has not been funded.
He said: “They (the OBR) literally said that, so you can’t fund a tax cut with… with savings from a programme that itself wasn’t funded.
“So you know, big question here, backed up by someone who – as you can rightly say – was only recently was in the heart of government under Labour – so it’s a fairly extraordinary position… I certainly agree with the new Prime Minister that cost of living is a big issue, I think we all agree with that, it’s still the number one thing that comes up on the doorstep with my constituents.
“But if you’re going to have policies to deal with it, they’ve got to last more than a few minutes in terms of scrutiny, to be honest.”
James Cartlidge (Image: Getty)
Vacancies fall again as private sector wage growth drops below 3%
Job vacancies have fallen back further as under-pressure small businesses rein in hiring in the face of rising costs and higher wage bills, according to official figures.
The Office for National Statistics (ONS) said wage growth in the private sector also fell below 3% for the first time since 2020.
The latest figures showed there were 7,000 fewer vacancies in the three months to June at 712,000, which follows a 19,000 drop in the previous three months.
This was driven by smaller businesses, which saw vacancies fall 8,000, though this was partially offset by an increase in medium sized firms, the ONS said.
Government borrowing fell to £16bn in June
UK Government borrowing fell to £16 billion last month, below what forecasters were expecting thanks to lower inflation-linked debt interest costs, according to official figures.
It means June’s public sector net borrowing figure was £7.9 billion, or 33.1%, less than the same month in 2025, the Office for National Statistics (ONS) said.
It was also £300 million below the Office for Budget Responsibility’s (OBR) forecast, and £2 billion less than what most economists had been expecting.
Borrowing between April and June was 1.9% of the UK’s gross domestic product (GDP), representing the 10th highest period since comparable records began in 1993.
Sacked Starmer ally questions funds for Burnham’s VAT pledge
Former chief secretary to the prime minister Darren Jones said the digital ID project was unfunded and questioned how the VAT cut would be paid for.
In a post on X he said: “Good news that VAT will be cut on electricity bills.
“It’s a simple way for families to save a few quid, and to mechanically help to keep inflation that little bit lower.
“But the DigitalID program was unfunded. The government will have to set out how it will pay for its new policies at the budget.”
Rayner back as Housing Secretary – months after quitting over unpaid tax row
Angela Rayner has also been welcomed back into Government, retaking her old job as Housing Secretary.
It comes just months after she was forced to quit the very same role over a row about unpaid stamp duty on her seaside home on the south coast.
The former deputy Prime Minister referred herself to the standards watchdog after admitting she had underpaid tax on the property.
Her return puts her straight back in charge of the housing brief – the same brief she was managing when the scandal broke.
Critics have seized on the appointment, with the Conservative Party questioning why Mr Burnham has brought her back into the same department so soon after her resignation.
Angela Rayner (Image: Getty)
The stolen phone that forced Haigh out of Government
Louise Haigh resigned as Transport Secretary in Sir Keir Starmer’s Government back in November 2024, after admitting she had wrongly told police a work mobile phone was stolen in 2013.
In a resignation letter to Sir Keir at the time, she insisted she remained “totally committed to our political project” but believed it would be “best served by my supporting you from outside Government”.
She is now back in Government as Chancellor of the Duchy of Lancaster – a role which will see her responsible for the department running the propriety and ethics team.
(Image: Getty)
Burnham rivals fury as ex-minister who quit over fraud conviction handed Cabinet return
Rivals have rounded on Andy Burnham’s decision to bring Louise Haigh back into Government – just months after she quit as a minister over a fraud conviction.
Ms Haigh is seen as the Prime Minister’s right-hand woman, having masterminded his Makerfield by-election win and stood close to him for years.
But Conservatives were quick to point out she was forced to resign the last time she held office, after it emerged she had a decade-old fraud conviction.
Andy Burnham to cut VAT on energy bills
New Prime Minister Andy Burnham has taken his first major decision and cut VAT on energy bills.
Chancellor John Healey writes: “Today’s energy tax cut will give families some breathing room on bills, and provide some reassurance this winter.
“This will be funded from the cancelled Digital ID scheme this year, helping to bring down inflation while supporting households in every postcode.”
From October 1 this year bills will reduce by around £45 a year, the government says.
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