Rachel Reeves

On his first day as UK Prime Minister, Andy Burnham executed a sweeping cabinet reshuffle, dismissing key Keir Starmer loyalists including Chancellor Rachel Reeves, Deputy PM David Lammy, and others. He appointed John Healey as Chancellor and Ed Miliband as Foreign Secretary, signaling a shift toward Northern English representation. The purge consolidates Burnham’s power and marks a decisive break from the Starmer era, with pledges on housing, fiscal rules, and an early election.

23 reports · 6 sources · Updated Jul 24, 02:40 PM UTC

New analysis by the Taxpayers' Alliance reveals that nearly one million people in the UK will be pushed into higher income tax bands this year due to the government's freeze on tax thresholds, a phenomenon known as fiscal drag or 'stealth tax'. Specifically, 500,000 more people will pay the basic 20% rate, 410,000 will enter the 40% higher rate, and 70,000 will be subject to the 45% additional rate. The number of additional rate taxpayers has quintupled. On average, Britons will pay £640 more in income tax compared to the 2025 financial year and £1,040 more than in 2024. The freeze, extended by former Chancellor Rachel Reeves until April 2031, aims to increase fiscal headroom. Prime Minister Andy Burnham has indicated he may review the £12,571 personal allowance at the upcoming Budget, though his spokesman denied immediate plans for a tax cut. Shadow Chancellor Sir Mel Stride warned that Burnham is heading toward further tax increases, citing unfunded pledges on defence, energy, and public sector pay.

1 reports · 1 sources · Updated Jul 22, 06:00 PM UTC

Alan Mak MP, a former Treasury and Business Minister, argues that Labour under Keir Starmer and Rachel Reeves has left a legacy of high taxes, high regulation, and low growth, damaging Britain's economy and especially high-growth scaleup companies. He criticizes specific Labour policies including the 'Jobs Tax' (raising employer National Insurance), anti-employment legislation, energy policy driving up industrial costs, and taxes on family farms and businesses. Mak warns that these policies are driving entrepreneurs to scale up abroad, with 94% of high-growth businesses selling early or moving overseas. He calls on new Prime Minister Andy Burnham to adopt Conservative plans to cut energy bills, scrap red tape, and restore incentives for investment and work, warning that Burnham's instincts toward more state control would compound Labour's failures.

1 reports · 1 sources · Updated Jul 22, 12:00 PM UTC

UK inflation remained above the Bank of England's 2% target, with the Office for National Statistics reporting CPI inflation at 2.6% in the year to June, slightly below analyst expectations of 2.7% and down from 2.8% in May. Core CPI, excluding food and energy, also stood at 2.6%. Analysts and the Bank forecast inflation could edge closer to 3% later this year, driven by business tax hikes from Rachel Reeves' first Budget and disruption to oil supplies due to the blocking of the Strait of Hormuz amid the Iran war. The new government under Prime Minister Andy Burnham announced measures including stripping VAT from household electricity bills from October, which could reduce inflation by 0.1 percentage points. The Bank of England is widely expected to hold interest rates at 3.75% at its next meeting, with markets pricing in at least two rate hikes as the UK battles persistent inflation.

1 reports · 1 sources · Updated Jul 22, 06:07 AM UTC

New UK Prime Minister Andy Burnham announced the removal of 5% VAT on domestic electricity bills from October 1, 2026, saving households about £45 annually, funded by scrapping a £1.8 billion digital ID program. He also introduced a £2 cap on single bus fares across England from January 2027, backed by £400 million in public funding. These measures aim to reduce the cost of living, support families, and curb inflation, following a 13% rise in the energy price cap due to global gas price increases.

6 reports · 4 sources · Updated Jul 22, 11:21 AM UTC

This City AM debate article examines whether Andy Burnham should have appointed a woman as his Chancellor, following Rachel Reeves' historic role as Britain's first female Chancellor. Two writers present opposing views. Rachel Watkyn argues that economic leadership should reflect the economy it serves, emphasizing that diverse leadership improves decision-making and sends a powerful signal to women. She contends that talent should be recognized regardless of gender. Morgan Jones counters that making gender the key issue is disingenuous, hiding political preference behind representation arguments. He stresses that talent and politics matter most, and that a solid pipeline for women at all levels is more important than any single appointment. The verdict concludes that while merit is paramount, Labour's historical struggle with promoting women to top roles makes representation a relevant factor, though the party's obsession with optics can be superficial.

1 reports · 1 sources · Updated Jul 22, 04:33 AM UTC

This opinion article by Gareth Davies MP critiques Andy Burnham's record as Mayor of Greater Manchester, arguing that his tenure was characterized by higher taxes, increased borrowing, and reliance on national taxpayer subsidies. Davies highlights that Burnham's mayoral precept for Band D homes rose nearly sevenfold, the combined authority's debt reached £1.34bn, and his bus network runs a £227m annual deficit. The article contrasts this with the constraints of national leadership, noting UK national debt at £2.98 trillion and high borrowing costs. Davies warns that Burnham's proposed policies—including £40bn in housing borrowing and nationalization plans—could lead to significant tax increases and higher mortgage rates for British citizens, as the country lacks fiscal room for further shocks.

1 reports · 1 sources · Updated Jul 22, 04:23 AM UTC

Chancellor John Healey is expected to announce major tax rises in the autumn after a City AM analysis revealed £22bn in uncosted spending pledges from Prime Minister Andy Burnham's administration. The pledges include ending rough sleeping and removing VAT from energy bills, adding to commitments inherited from Keir Starmer. Economists warn that a third consecutive tax-raising budget would damage business confidence. The £22bn figure does not include other costly proposals such as unfreezing personal allowances, nationalising Thames Water, or increasing foreign aid, which could add at least £45bn. Healey is constrained by fiscal rules and manifesto promises not to raise income tax, VAT, or employee national insurance, leaving limited options to generate revenue. The analysis highlights the tension between spending ambitions and fiscal discipline, with markets and investors skeptical that many commitments will be fulfilled.

1 reports · 1 sources · Updated Jul 22, 04:00 AM UTC

Martin Lewis, founder of Money Saving Expert, has publicly advised new UK Prime Minister Andy Burnham on tackling the cost of living crisis. Lewis outlined three priority areas: first, the ongoing cost of living pressures despite falling inflation, noting that the VAT cut on electricity bills is a 'totem of help' but insufficient. He called for further energy bill reductions, banning mid-contract price hikes on mobile and broadband, and addressing water bill increases and high housing costs. Second, Lewis highlighted intergenerational problems, particularly for young people facing a tough job market with vacancies halved since 2022 and AI threats. He criticized the government's freeze on the Plan 2 student loan repayment threshold, calling it a 'breach of the original promise' that forces graduates to pay more as earnings rise. The article also notes Burnham's government has cut VAT from electricity bills and may cap bus fares at £2.

1 reports · 1 sources · Updated Jul 21, 02:22 PM UTC

JPMorgan Chase CEO Jamie Dimon praised outgoing UK finance minister Rachel Reeves for fiscal prudence but warned new Chancellor John Healy against increasing the bank levy, though he declined to say if it would cancel a £3bn London headquarters project. Dimon urged the new government to adopt pro-growth policies. The article includes wider industry reactions: IG's Chris Beauchamp noted taxing banks is politically easy but risky for revenues; deVere Group's Nigel Green warned that Healey's appointment signals higher wealth, capital gains, and property taxes, advising wealthy individuals to act before the Autumn Budget. Green highlighted that the UK lost 16,500 millionaires in 2025 and forecasts further outflows. Norton Rose Fulbright's Jonathan Herbst called for policy continuity in financial services regulation. The analysis suggests markets had rallied on expectations of fiscal restraint, which Healey's appointment undermines.

1 reports · 1 sources · Updated Jul 21, 11:27 AM UTC

Inheritance tax (IHT) receipts in the UK soared to a record high of £2.3 billion in the three months to June 2026, a £96 million increase year-on-year, according to HMRC data. June alone saw £871 million in receipts, up from £730 million in May. The surge is attributed to former Chancellor Rachel Reeves' decision to extend the freeze on income tax thresholds until 2031, a policy critics call a 'tax rise by stealth' that pulls more middle-class families into the IHT net. Rising asset prices and the inclusion of unused pension pots from April 2027 are expected to further increase bills. Industry experts warn that Prime Minister Burnham, who has previously advocated for wealth tax reform, could alienate top earners by raising the top income tax rate to 50% or altering thresholds. The trend is making the UK less competitive for entrepreneurs and wealthy individuals, according to analysts.

1 reports · 1 sources · Updated Jul 21, 09:47 AM UTC

John Healey has been appointed Chancellor of the Exchequer (UK finance minister) under new Prime Minister Andy Burnham, who became the seventh UK PM in a decade. Healey faces the challenge of balancing Burnham's left-leaning agenda with market stability. Bond markets have been volatile amid fears of looser fiscal policy. Healey and Burnham announced a cut in sales tax on household electricity bills from 5% to 0%, funded by scrapping a digital ID program. Healey, a former defense secretary, is expected to prioritize defense spending. J.P. Morgan CEO Jamie Dimon has commented on the political shift. The article highlights uncertainty over Burnham's policy mix and the pressure on Healey to reassure investors.

1 reports · 1 sources · Updated Jul 21, 08:50 AM UTC

Prime Minister Andy Burnham has appointed Ellie Reeves, sister of former Chancellor Rachel Reeves, as Attorney General, replacing Lord Richard Hermer KC. Reeves, a trained employment lawyer and Labour MP for Lewisham West and East Dulwich, previously served as Solicitor General. She will oversee the Government Legal Department, Crown Prosecution Service, and Serious Fraud Office. In a separate move, Burnham dismissed David Lammy as Lord Chancellor and Justice Secretary, appointing Manchester MP Alex Norris, who lacks legal training but previously served as minister for border security. Norris faces challenges including court backlogs, prison overcrowding, and legal aid underfunding. Lammy's departure follows backlash over his Courts and Tribunals Bill, which aimed to restrict jury trial rights. Criminal barristers recently demanded guarantees to preserve jury trials.

1 reports · 1 sources · Updated Jul 21, 07:50 AM UTC

The article analyzes the severe economic challenges facing new UK Prime Minister Andy Burnham, who has long aspired to the role. It highlights four key issues: high government borrowing costs (UK bond yields highest in G7), sticky inflation forcing the Bank of England to hold interest rates until 2027, a fiscal trilemma of surging spending demands versus tax and rule commitments, and a tax burden at post-war highs. Burnham promises a 'new economy' and breathing space for households, but inherits a constrained fiscal environment. Economists warn that public sector pay restraint and welfare cuts may be needed to ease bond yields. The piece contrasts Burnham's sober assessment with his predecessors' more optimistic claims.

1 reports · 1 sources · Updated Jul 21, 05:31 AM UTC

The Financial Times News Briefing podcast discusses the challenging fiscal situation inherited by new UK Chancellor John Healey, who replaced Rachel Reeves after Andy Burnham became prime minister. Healey faces a compressed fiscal buffer against self-imposed debt rules, potentially halved from £23bn due to economic pressures from the Iran war and inflation. He is expected to prioritize defense spending, consistent with his previous role as defense secretary, while also needing to fund a cost-of-living package and potential tax cuts on personal allowances promised by Burnham. Separately, the episode reports on US President Trump's new 50% tariffs on Canada, set to take effect in 30 days, reigniting trade tensions after the USMCA failed to be renewed.

1 reports · 1 sources · Updated Jul 21, 04:00 AM UTC

Andy Burnham has officially become British Prime Minister and immediately reshuffled the cabinet, surprising observers by appointing former Defense Secretary John Healey as Finance Minister. Ed Miliband becomes Foreign Secretary, Yvette Cooper moves to Health, and Wes Streeting takes Defense. Several confidants of predecessor Keir Starmer, including David Lammy and Rachel Reeves, were removed. Burnham held phone calls with US President Donald Trump, Ukrainian President Volodymyr Zelenskyy, and received a congratulatory call from German Chancellor Friedrich Merz, who invited him to Berlin. Burnham emphasized reindustrialization, defense, and security as priorities.

1 reports · 1 sources · Updated Jul 21, 12:36 AM UTC

JP Morgan CEO Jamie Dimon has refused to commit to the bank's planned £10bn tower in Canary Wharf, warning the new UK government under Andy Burnham against penalising the banking sector with new taxes. Dimon stated he hopes London remains the bank's European home but cautioned that an uncompetitive tax system would drive capital away. The warning comes as Burnham's government faces a decision on whether to uphold a major tax break for the project, following a non-legally binding Memorandum of Understanding signed in March. The decision will test the new Chancellor after Rachel Reeves was ousted from Cabinet. Dimon criticised the UK Bank Levy, calling it unfair since JP Morgan did not cause the financial crisis, and urged for policies that drive growth.

1 reports · 1 sources · Updated Jul 20, 11:01 PM UTC

Following his election victory in Makerfield, Prime Minister Burnham has announced a major cabinet reshuffle, described as a 'culling of the old guard'. Key appointments include John Healey as Chancellor of the Exchequer, seen as a market-reassuring choice; Shabana Mahmood retained as Home Secretary to continue reducing net migration; and Ed Miliband appointed as Foreign Secretary, a move interpreted as sidelining a potential rival. Louise Haigh returns as Chancellor of the Duchy of Lancaster. The article notes Rachel Reeves rejected the Defence Secretary role, raising questions about the position's appeal. Burnham's new regime is committed to moving power out of Westminster. The analysis, from Conservative Home, focuses on the implications for the Conservative Party and internal Labour dynamics.

1 reports · 1 sources · Updated Jul 20, 06:30 PM UTC

UK borrowing costs rose at the fastest pace among G7 nations after new Prime Minister Andy Burnham indicated he would take a flexible approach to the country's fiscal rules, spooking financial markets. In his maiden speech, Burnham said he would use 'flexibility' within existing fiscal rules, leading to a rise in 10-year gilt yields to 5.03%, an eight-week high. The rise was the fastest in the G7 excluding Japan. After markets closed, Burnham surprised the City by appointing John Healey as Chancellor, replacing Rachel Reeves. Healey, a veteran of the Blair-Brown government, may calm fears. The Resolution Foundation warned that boosting public financial institutions by £16bn could cost £400 million annually in debt interest. Higher borrowing costs threaten to increase the government's debt interest bill, already forecast at £111.2bn for the financial year, equivalent to 8.3% of public spending. Burnham promised measures to help households with the cost of living, to be announced Tuesday.

1 reports · 1 sources · Updated Jul 20, 06:29 PM UTC

New UK Prime Minister Andy Burnham, upon becoming Labour leader last Friday, declared an end to factionalism within the party, criticizing predecessor Keir Starmer's divisive approach. However, just three days later, Burnham conducted a sweeping cabinet reshuffle, removing Starmer loyalists including Chancellor Rachel Reeves, Deputy David Lammy, and several other ministers. They were replaced by key Burnham supporters such as Ed Miliband (Foreign Secretary) and Louise Haigh. The article argues that despite Burnham's rhetoric about unity and harnessing all talents, his actions demonstrate a prioritization of consolidating power over ending factionalism, sending a contradictory message.

1 reports · 1 sources · Updated Jul 20, 06:28 PM UTC

John Healey has been appointed Britain's new Chancellor of the Exchequer as Prime Minister Andy Burnham announces a major Cabinet reshuffle. Healey, the Rawmarsh and Conisbrough MP who previously served as Defence Secretary under Keir Starmer before resigning over spending disputes, was a surprise choice for the Treasury role, defying expectations that Shabana Mahmood or Wes Streeting would get the post. Former Labour leader Ed Miliband was also considered but was the least popular candidate among City financiers. The appointment comes after Rachel Reeves was ousted as Chancellor, despite signaling her desire to remain. Burnham, who previously served as Chief Secretary to the Treasury under Gordon Brown, is expected to be heavily involved in fiscal policy. The new prime minister has made devolution a central mission, aiming to give more tax and spending powers to regional governments. City bosses and bondholders may find some relief in Healey's appointment, given concerns over Labour's fiscal responsibility.

1 reports · 1 sources · Updated Jul 20, 05:17 PM UTC

Wealthy Brits are bracing for major tax reforms under new UK Prime Minister Andy Burnham, who has refused to rule out a wealth tax and signaled changes to stamp duty, capital gains tax, and income tax thresholds. While Burnham pledged not to raise income tax, VAT, or employee national insurance, he may increase the personal allowance while freezing higher-rate thresholds, dragging more middle-class 'HENRYs' (High Earners, Not Rich Yet) into higher tax bands. Burnham has also suggested hiking the top income tax rate from 45% to 50%, a move previously introduced by Gordon Brown in 2010. Economists warn this could trigger a wealth exodus similar to that following the abolition of the non-dom tax regime. Additionally, Burnham's plans to nationalize heavily indebted Thames Water could further increase the tax burden on higher earners. Industry figures urge clear communication of tax reforms in the Autumn Budget to avoid damaging uncertainty.

1 reports · 1 sources · Updated Jul 20, 04:45 PM UTC

UK government borrowing costs spiked sharply on Monday after new Prime Minister Andy Burnham stated he would exploit 'flexibility' within existing fiscal rules to increase borrowing. The yield on the 10-year gilt rose eight basis points to break 5%, while the 30-year yield hit its highest level since the height of the Middle East conflict. Bond investors dumped long-duration gilts, and sterling fell 0.2% against the dollar, signaling a 'sell Britain' trade. Burnham also removed Rachel Reeves as Chancellor, with Shabana Mahmood expected to replace her. Market analysts expressed nervousness about the new administration's leftward shift and big-spending rhetoric. Burnham, who replaced Keir Starmer after winning the Labour leadership, promised a 'new economy' with greater public control of essentials, but his comments immediately rattled bond markets already strained by high debt levels and persistent inflation.

1 reports · 1 sources · Updated Jul 20, 04:13 PM UTC

Incoming UK Prime Minister Andy Burnham is expected to announce new drilling approvals for the Jackdaw gas field and Rosebank oil field in the North Sea within days of taking office, according to Bloomberg. The fields, owned by Adura (a Shell-Equinor joint venture), are currently in legal limbo after previous approvals were overturned. Burnham's team has asked civil servants to prepare plans, including expanding 'tie-backs' near existing fields. While no final decision has been made, Burnham is reportedly receptive to Scottish Labour MPs' calls for a policy shift. The move would likely anger environmentalists but is welcomed by trade unions and Chancellor Rachel Reeves. Public consultations launched on Thursday may delay formal approval. Adura argues the projects would boost energy security, sustain thousands of jobs, and provide 10% of UK domestic gas production.

1 reports · 1 sources · Updated Jul 20, 04:00 PM UTC

The article analyzes UK Prime Minister Andy Burnham's consideration of reversing Rachel Reeves's stealth tax on income, which freezes tax thresholds at 2021 levels. Burnham identified the tax freeze as a major drag on living standards, hearing about it frequently on the campaign trail. The freeze is set to raise over £42bn this year and £67bn annually by 2030-31. Burnham promised families 'breathing space' but faces a fiscal challenge: every £100 increase to the tax-free allowance costs the Treasury £1bn per year. The article examines options including linking thresholds to the triple lock (costing £3bn next year) or cutting National Insurance contributions, which would be more efficient for workers. The analysis highlights the tension between Burnham's big-state spending promises and his tax-cutting hints.

1 reports · 1 sources · Updated Jul 20, 02:18 PM UTC

Big Yellow Group, a FTSE 250 self-storage operator, is reducing its workforce and increasing investment in automation to offset higher costs resulting from Chancellor Rachel Reeves' 2024 Autumn Budget, which raised national insurance, minimum wage, and business rates. The company is not replacing departing staff and is investing in solar panels and energy efficiency to cut utility costs, as warehouses require significant energy for temperature control and security. The changes are expected to increase store operating costs by 4% in the first half of the financial year. Big Yellow also sold an industrial estate in Harrow for £38.4 million to fund construction of 12 new stores, with four expected to open this year. Revenue rose 3% to £53.2 million, but shares fell 1.5% amid ongoing fiscal uncertainty. CEO Jim Gibson noted the operating environment remains challenging ahead of the next Autumn Budget.

1 reports · 1 sources · Updated Jul 20, 07:41 AM UTC

LabourList analysis reveals that former Health Secretary Wes Streeting performed the most broadcast rounds (30) of any minister in Keir Starmer's government since July 2024, followed closely by Education Secretary Bridget Phillipson (28) and Pat McFadden (26). Among the great offices of state, Foreign Secretary Yvette Cooper led with 24 appearances, while Chancellor Rachel Reeves did 15, Home Secretary Shabana Mahmood did 9, and Prime Minister Starmer himself did 7. By department, the Home Office dominated with 65 ministerial broadcast appearances, followed by the Cabinet Office (63) and the Department for Education (59). The analysis, based on Politico's daily round-ups and BBC's Sunday with Laura Kuenssberg, highlights the government's communication priorities. LabourList editor Emma Burnell noted Streeting was relied upon as one of Labour's best communicators, and speculated on whether new Prime Minister Andy Burnham will diversify the government's broadcast voices.

1 reports · 1 sources · Updated Jul 19, 11:00 PM UTC

LabourList analysis reveals that former Health Secretary Wes Streeting performed the most broadcast rounds (30) among ministers in Keir Starmer's government since July 2024, followed closely by Education Secretary Bridget Phillipson (28) and Pat McFadden (26). Foreign Secretary Yvette Cooper led the great offices of state with 24 appearances, while Chancellor Rachel Reeves did 15 and Prime Minister Starmer only 7. By department, the Home Office dominated with 65 ministerial broadcast appearances, followed by the Cabinet Office (63) and the Department for Education (59). LabourList editor Emma Burnell noted Streeting was heavily relied upon as one of Labour's best communicators, and that the issue agenda is unlikely to change dramatically under new Prime Minister Andy Burnham. The data was compiled from Politico's daily round-ups and BBC's Sunday with Laura Kuenssberg.

1 reports · 1 sources · Updated Jul 19, 11:00 PM UTC

Andy Burnham is set to become the UK's seventh prime minister in a decade, but Wall Street veteran Ed Yardeni warns that bond investors, not the prime minister, truly control the country's economic direction. The article highlights an IMF report noting that the 2022 gilt market turmoil marked a structural shift in fragility, with foreign investors now holding up to 30% of UK government debt and global factors driving 60-90% of yield variation. Burnham, who previously criticized being 'in hock to the bond market,' inherits a hyper-reactive market that ousted Liz Truss. He faces a difficult balancing act between reviving growth and maintaining fiscal credibility. Markets are cautiously optimistic about his expected appointment of Shabana Mahmood as Chancellor, but Yardeni cautions that 'Bond Vigilantes are restless.' The IMF advises against hiking taxes on top earners, suggesting instead targeted increases at lower income levels.

1 reports · 1 sources · Updated Jul 19, 08:00 PM UTC

Andy Burnham is set to become the United Kingdom's seventh prime minister in a decade, but Wall Street veteran Ed Yardeni warns that bond investors, not the prime minister, will truly be in charge. The article highlights an IMF report noting that the 2022 gilt market turmoil under Liz Truss marked a structural shift, leaving the UK vulnerable to volatile capital flows. Foreign investors now hold up to 30% of UK government debt, and the bond market remains 'hyper-reactive.' Burnham, a Labour Party leader, has previously criticized being 'in hock to the bond market' but must now balance reviving economic growth with maintaining fiscal credibility. Reports that Shabana Mahmood may become Chancellor have cheered markets, but Yardeni cautions that 'Bond Vigilantes are restless.' The IMF suggests targeted tax increases on lower earners rather than top earners to avoid harming the economy.

1 reports · 1 sources · Updated Jul 19, 08:00 PM UTC