Brian Wheeler

John Healey, who resigned as defence secretary after criticising inadequate defence funding, has been appointed chancellor by Prime Minister Andy Burnham. Known for his experience and loyalty within Labour, Healey replaces Rachel Reeves and is expected to align closely with Burnham’s priorities, including reindustrialisation, cost-of-living issues and national growth. His background includes senior ministerial roles, a long-standing interest in housing policy and strong support for Ukraine and increased defence spending. As chancellor, he will now be in a position to set the defence investment levels he previously demanded.

John Healey’s appointment as chancellor follows his unexpected resignation as defence secretary over insufficient defence investment, a move that accelerated Keir Starmer’s downfall. Seen as a reliable and principled figure with decades of Labour frontbench experience, Healey replaces Rachel Reeves under new Prime Minister Andy Burnham. His past clashes with the Treasury over defence funding and his strong support for Ukraine highlight the policy direction he may pursue. His return to senior office signals alignment with Burnham on economic growth and reindustrialisation, and his new role positions him to implement the increased defence spending he previously advocated.

Andy Burnham is poised to become the United Kingdom’s next prime minister after securing the support of Labour MPs, marking the rise of a northern, working‑class politician who built a strong regional base as mayor of Greater Manchester. His career spans roles in government under Blair and Brown, two failed Labour leadership bids and a decade of prominence shaped by transport reforms and clashes with the Conservative government during the pandemic. Despite his long trajectory, he remains relatively unknown outside his region, and his political direction is viewed as ambiguous, combining left‑leaning rhetoric with limited policy detail. Constraints on public spending and prior Labour commitments are expected to limit major domestic shifts, while foreign policy is projected to remain broadly consistent with recent governments. Significant uncertainty surrounds how he will govern amid economic challenges and public expectations.

Ed Davey urges incoming prime minister Andy Burnham to implement proportional representation before the next general election, arguing that waiting could prevent reform. Burnham has expressed support for electoral reform but indicated it may not happen immediately. More than 80 Labour MPs back an amendment calling for a commission to examine fairer voting systems, presenting an early test for Burnham. Davey says a referendum is unnecessary and calls for swift action to reset politics and address systemic issues he believes stem from first-past-the-post.

Kemi Badenoch accused Keir Starmer of leaving a multibillion‑pound shortfall in the UK’s defence investment plan, arguing that the incoming government will face a funding gap of about £5bn. The defence plan commits £15bn in additional spending by 2030, but only £10.3bn in savings have been identified, leaving £4.7bn to be resolved in the autumn Budget. Starmer rejected the criticism, highlighting previous Conservative defence cuts and pointing to budget headroom created by Chancellor Rachel Reeves. The funding shortfall, acknowledged by Defence Minister Luke Pollard, has raised questions about whether Andy Burnham, expected to become prime minister, has endorsed the plan. Proposed cuts to transport and energy projects to meet spending goals have triggered backlash from local leaders and MPs, while the government maintains that national security must take priority.

Kemi Badenoch criticised Keir Starmer over a reported multibillion‑pound defence funding gap as the government announced a £15bn increase in defence spending that still falls short of military demands. The Treasury has identified £10.3bn in savings, leaving £4.7bn for the next chancellor to fund, with Andy Burnham expected to face the shortfall if he becomes prime minister. Starmer defended the plan and accused Conservatives of previously cutting defence budgets. Funding is expected to come from reductions in long‑term investment across government departments, prompting backlash over potential cuts to road and transport projects. Several MPs and local leaders objected to the threatened infrastructure cancellations, while Downing Street emphasised prioritising national security.