Andy Burnham tells ministers "we need to be a cost of living government" as he holds his first cabinet meeting as prime minister
Members of his top team are in No 10, including Chancellor John Healey, Home Secretary Shabana Mahmood and Housing Secretary Angela Rayner - see who else is in the cabinet
Earlier, Burnham announced that he was scrapping VAT on household electricity bills in October, saving a typical household about £45 a year - what we've heard so far
This will be funded by scrapping Keir Starmer's digital ID scheme, No 10 says, but former minister Darren Jones argues the ID scheme was "unfunded"
Pushed on whether savings had been found for digital IDs, Business Secretary Jonathan Reynolds tells the BBC "they would have had to have been", calling today's announcement a "legitimate decision"
For many it will be a welcome, but still relatively small, reduction to bills. Whether it proves to be a cut to the total bill depends on wholesale energy prices, writes our cost of living correspondent
We can bring you some more now from Andy Burnham's first cabinet meeting as PM.
He began the meeting by congratulating and thanking both new and reappointed ministers for being in his cabinet.
He told ministers that they need to be a "cost of living government” and give people a sense “that help is coming”.
Applause as Burnham arrives for first cabinet meeting as PM
Image source, Getty ImagesNigel Farage is campaigning for the Clacton seat after he resigned as the constituency's MP on 7 July
Away from events in Westminster, Reform UK leader Nigel Farage has called on Prime Minister Andy Burnham to hold a general election.
Speaking from a rally in Norfolk, Farage says Burnham became the leader of the Labour Party "unopposed" and "has no mandate whatsoever" to push through the changes he is proposing.
"You cannot make the biggest change in British politics in 40 years without a mandate from the British people.
"It would be only decent, right and proper to call a general election on that issue and to do it now."
As a reminder, Farage triggered a by-election in Clacton after resigning as the constituency's MP on 7 July, following increased scrutiny over his finances and a parliamentary investigation.
However, he is standing again. Farage is the only candidate from a Westminster party after Labour, the Conservatives, the Liberal Democrats and the Green Party all declined to take part in the contest for the Essex seat.
A total of 34 candidates have been confirmed for the by-election, you can find the full list here.
Image source, Downing StreetAndy Burnham appointed his final cabinet ministers shortly before the clock struck midnight on Monday.
As he prepares to hold his first cabinet meeting as PM, there's lots to unpack - here's the latest from our correspondents:
Economy
Burnham has promised to cut VAT from household electricity bills from 1 October. But already – within hours - he is taking flak from a man who just yesterday was in a senior job in Downing Street working alongside Keir Starmer, writes political editor Chris Mason. Here our cost of living correspondent looks at what the VAT cut really means.
Foreign policy
One of the first issues Ed Miliband will likely need to look at as foreign secretary is the US war with Iran, which is escalating again. Miliband is seen by diplomats I've spoken to as very competent, but he doesn't have much experience in the world of international affairs, says our international editor Jeremy Bowen.
Health
As Burnham pledges to reform social care, our health editor Hugh Pym says: "Yvette Cooper will in some ways be running one of the most significant areas of policy in England for the Labour government. Progress or not, social care and improving NHS performance are likely to be key areas on which voters assess Labour at the time of the next election."
Defence
John Healey’s appointment as chancellor has buoyed some of Britain’s biggest defence companies, writes our senior business reporter. Healey, who quit as defence secretary over the Treasury's “unwillingness” to fund a military spending plan, now overseas the public purse. Investors are hoping the UK will commit to increasing defence spending to 3% of GDP by 2030.
Home Secretary Shabana Mahmood has now arrived at Downing Street as more ministers assemble for Andy Burnham's first cabinet meeting.
New Foreign Secretary Ed Miliband is there too.
Pat McFadden has also arrived - he is staying on in his position as work and pensions secretary.
We've also seen the new Health Secretary Yvette Cooper, Leader of the Commons Alan Campbell and Chief Secretary to the Treasury Emma Reynolds arrive.
Image source, Getty ImagesHome Secretary Shabana Mahmood
Image source, Getty ImagesForeign Secretary Ed Miliband
Image source, Getty ImagesHealth Secretary Yvette Cooper
Image source, ReutersWork and Pensions Secretary Pat McFadden
Image source, PA MediaNew Chancellor John Healey
We've seen the new Chancellor John Healey also arrive for the first cabinet meeting.
He was formerly defence secretary under Keir Starmer before resigning over a defence spending row.
Bridget Phillipson, the ex-education secretary who attends cabinet as equalities minister, and Environment Secretary Angela Eagle have also been pictured walking into No 10.
Image source, ReutersAngela Eagle is the environment secretary
More ministers are arriving at Downing Street for the new prime minister's first cabinet meeting.
Defence Secretary Wes Streeting and Secretary of State for Northern Ireland Chris Bryant have arrived, and Angela Rayner, who has been reappointed Housing Secretary, has also been seen walking up to the famous front door.
Image source, Getty ImagesHousing Secretary Angela Rayner
Image source, PA MediaWes Streeting and Chris Bryant have arrived
We're seeing ministers arrive at Downing Street for Andy Burnham's first cabinet meeting.
His cabinet was announced on Monday evening, after several members of Keir Starmer's government were sacked.
Housing minister Matthew Pennycook who attends cabinet was seen walking down the road and into Number 10, followed by Lucy Powell, who is now the education secretary.
You can also watch live at the top of this page.
Image source, Getty ImagesMatthew Pennycook has arrived for the cabinet meeting
Image source, Getty ImagesEducation Secretary Lucy Powell
Kevin Peachey
Cost of living correspondent
Image source, EPAThe VAT cut on electricity bills is estimated to amount to £45 a year (or about £4 a month) for a household using a typical amount of energy.
For many that will be a welcome, but still relatively small, reduction to bills. Whether it proves to be a cut to the total bill depends on wholesale energy prices.
A typical bill rose by 13% - about £18 a month – in July, owing to the impact on those wholesale costs of conflict in the Middle East. It is currently expected to stay at roughly that level in October, but could go up.
Food prices are rising at 2.2% a year. In 2022, it cost £1 for the average box of six supermarket own brand free-range eggs. By May this year, the same box costs £1.80. Wages have risen too, but not as fast.
This will help, but not solve, cost-of-living pressures.
So, it is a signal to the public that the new government is willing to interject to reduce bills, but a signal to the markets that it would only do so if it can find the money from savings elsewhere.
Image source, PA MediaRachel Reeves (left) and her sister Ellie in 2024 when Rachel was shadow chancellor
Long before Burnham's cabinet decisions were announced yesterday, movements on who he would have in, and who he would send home, had been the subject of debate.
It was widely anticipated that Rachel Reeves would not hold on to her post as chancellor, and yesterday she was indeed replaced by former Defence Secretary John Healey.
While she returns to the backbenches - her sister, Ellie Reeves, has been brought on to the front bench and appointed attorney general.
They are not the only sibling pairing to have made it to the top of politics.
New Foreign Secretary Ed Miliband has followed in the footsteps of his brother David Miliband who held the role himself between 2007 and 2010.
While Angela Eagle, who has just been appointed environment secretary, is twin sister to Maria Eagle who served as a minister of state at the Ministry of Defence from July 2024 - September 2025.
Madeleine Lake
Live reporter
Image source, Getty ImagesA cheery Shabana Mahmood outside No 10 after her keeping her position as home secretary
For the first time in a UK cabinet, women outnumber men.
On Monday, Andy Burnham began to form his government and out of the 23 full members of the cabinet - including the PM - 12 are women and 11 are men.
Among the women appointed are Home Secretary Shabana Mahmood, Housing Secretary Angela Rayner, Louise Haigh as first secretary of state, and Lucy Powell as education secretary.
Image source, Getty ImagesAngela Rayner is the housing secretary
The previous record was set in Keir Starmer's first cabinet in 2024, with 11 women out of 22 full members.
Another milestone was reached that year with the appointment of Rachel Reeves as the country's first female chancellor. Former Defence Secretary John Healey has been appointed as the new chancellor in Burnham's government.
Image source, Getty ImagesLouise Haigh is the first secretary of state and Chancellor of the Duchy of Lancaster
Image source, Jeff Overs/BBCThis lunchtime, Andy Burnham will gather his new cabinet for the first time.
Its appointment became something of a nocturnal affair, with a minibus full of ministerial wannabes still inside Downing Street at 22:00 BST on Monday, waiting for their new positions to be confirmed, writes the BBC's political editor Chris Mason.
Burnham has appointed John Healey as his new chancellor, Ed Miliband as foreign secretary and Wes Streeting as defence secretary - here we take a look at the latest cabinet appointments.
At 06:00, the newly formed government announced its first major policy aimed at cutting VAT from domestic electricity bills.
Stick with us for all the action and analysis throughout the day.
Chris Mason
Political editor
Image source, ReutersAndy Burnham has started his first full day in the job with a promise to cut VAT from household electricity bills from 1 October.
But already – within hours - he is taking flak from a man who just yesterday was in a senior job in Downing Street working alongside Keir Starmer.
On Monday night, the former chief secretary to the prime minister, Darren Jones, posted a picture on X of him having a beer, captioned "thank you and good night. See you September."
If that was meant to suggest a vow of silence it only lasted a little over 12 hours, because at breakfast time this morning came another post, this one unaccompanied by any picture but loaded with political bite.
"Good news that VAT will be cut on electricity bills," wrote Jones.
"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."
Image source, PA MediaVAT cuts on household electricity bills are "a start" but more needs to be done, says Green Party leader Zack Polanski.
In a post on X, Polanski adds "it won't be nearly enough for the millions of families facing another tough winter".
He says that a "robust energy cap" is needed to protect people from the "fall out" from the war in Iran.
Image source, Getty ImagesSome more now on the policy Andy Burnham announced this morning, cutting VAT on electricity bills.
Conservative leader Kemi Badenoch says she welcomes "action to cut the cost of energy", but has questioned how Andy Burnham will fund it.
Writing on X, Badenoch says energy prices are "too high because of Ed Miliband's policies".
Miliband was energy secretary under Keir Starmer.
"The question is how will Burnham fund all his new policies without putting up taxes or borrowing even more," Badenoch says.
The government says scrapping plans for digital ID will fund the VAT cut on electricity bills.
But citing comments from ex-chief secretary Darren Jones who says the ID policy itself was not fully funded, Badenoch says "you can’t use the funding from an unfunded programme to pay for cheaper bills".
Dearbail Jordan
Senior business and economics reporter
Image source, Getty ImagesJohn Healey’s appointment as chancellor has buoyed some of Britain’s biggest defence companies.
Just weeks ago, Healey quit as defence secretary as he criticised the Treasury – then led by Rachel Reeves – over its “unwillingness” to fund a military spending plan.
Now that he oversees the public purse, investors are hoping the UK will commit to increasing defence spending to 3% of GDP by 2030.
Babcock International, which builds frigates, saw its share price rise by 7.3% on Tuesday while BAE Systems’ stock price jumped by 3.3%.
Meanwhile, the yield on 10-year government bonds - effectively the interest rate charged to the UK government for a 10-year loan – ticked a little lower this morning. On Monday, the yield hit 5.03% after Burnham said he would use “any flexibility” in the fiscal rules for funding.
The yield fell back5.01% after Healey said the government would stick to fiscal rules on borrowing and spending put in place by Reeves.
Jeremy Bowen
International editor
Image source, ReutersThe new foreign secretary Ed Miliband is seen by diplomats I've spoken to as very competent, but he doesn't have much experience in the world of international affairs.
One of the issues he will likely first need to look at is the US war with Iran, which is escalating again.
There was some limited opening up of British bases during the war. What if the Americans want to mount more bombing raids, and will they ask for more access to British bases?
There are US bases here in the UK and in Cyprus. That is something that may be framed by Trump as a test of the new government.
I think they will be very cautious about getting deeply enmeshed in a war that has proved to be pretty disastrous for the United States.
Support for Ukraine is popular here in the UK, however there is always a money issue. We are great at rhetoric and not so good at paying for defence and there will be a lot of pressure to find more money.
Andy Burnham also talked on social media before he became PM about a harder line on Israel. He has suggested they will look at the issue of banning trade with Jewish settlements. Some of them have factories and vineyards, for example, and there is trade coming from those particular enterprises.
Chris Mason
Political editor
Image source, EPA/ShutterstockThe appointment of John Healey as chancellor is fascinating. Healey was a minister in the Treasury for five years between 2002 and 2007, firstly as economic secretary and then as financial secretary.
Senior figures in government say Burnham and Healey share the same economic outlook and ambitions – built on a desire for reindustrialisation and devolution.
It is also true that just a matter of weeks ago the new chancellor was being remarkably barbed about the government department he now leads.
He talked of a "Treasury orthodoxy that's a dead hand on dynamic government," and that it saw "defence as a drain rather than a driver of growth".
He added - with sting as a resigning defence secretary - that "our adversaries do not follow timetables set by the Treasury".
As one figure in Whitehall, steeped in defence, texted to remind me, Healey wrote in his resignation letter that "I am certain that a headmark date for 3% of GDP on defence in 2030 is what Britain must set".
Now it is his job, as chancellor, to make those numbers add up.
Glenn Campbell
BBC Scotland political editor
Image source, Getty ImagesDouglas Alexander is one of the very few Scottish Labour MPs who actually knows Andy Burnham.
They go back a long way having served in the Blair and Brown governments together.
As well as his experience, Alexander is super smart and has an extensive network that spans the globe.
On the down side, he is not popular with some of his party colleagues, and was co-director of Labour’s recent Holyrood election campaign that saw the party’s MSP group shrink further.
Alexander is robust in his dealings with SNP ministers. They say his original appointment marked a significant deterioration in Scottish and UK government relations after a period of better cooperation in the early days of the Starmer government.
Henry Zeffman
Chief political correspondent
Image source, PA MediaEnvironment Secretary Angela Eagle and Energy Secretary Miatta Fahnbulleh (right) were appointed to Burnham's cabinet last night
Go through the remaining cabinet appointments, many of them announced late last night, and there’s plenty of fascinating decisions in there.
Those close to Burnham’s team say he wanted to be seen to reward ministers who have worked doggedly in difficult jobs below the cabinet.
Into that category fall Alex Norris, the former immigration minister given a huge promotion to become justice secretary; Matthew Pennycook, who continues as housing minister but now attends cabinet; and Hamish Falconer, responsible for navigating Britain’s approach to the Middle East for the last two years, who now takes over negotiations with the EU.
Burnham clearly values experience.
Angela Eagle gets her first cabinet job as environment secretary a mere 29 years after her first ministerial position. Yvette Cooper returns to the health department as secretary of state 24 years after leaving a junior position there.
Chris Bryant - who along with Burnham is among the three remaining members of Labour’s 2001 intake - becomes Northern Ireland secretary. Alan Campbell, continuously on Labour’s frontbench since 2005, remains leader of the Commons.
The flipside of this is that Miatta Fahnbulleh and Anneliese Midgley, both from the 2024 intake and major figures in Burnham’s campaign over recent weeks, enter the cabinet as energy secretary and chief whip respectively.
By Daniel Wainwright, senior data journalist
As Andy Burnham takes over in Downing Street, Labour is still behind Reform UK in the opinion polls, but the gap has narrowed.
Polls conducted in the two weeks up to last Friday put Labour on an average of 21%, roughly level with the Conservatives.
Reform UK is averaging 25%, down from a peak of 32% last October.
The party still leads in most opinion polls, although a Survation poll published last week put Labour level with it, while an Opinium poll gave Reform a lead of just one percentage point.
The Greens are averaging about 13%, down from 17% in April, while the Liberal Democrats are on about 12%.
The SNP and Plaid Cymru are averaging 3% and 2% respectively. However, those figures represent their share of the vote across Great Britain, even though the parties stand candidates only in Scotland and Wales respectively.
