Burnham’s choice of John Healey as chancellor is a shock decision which signals a true overhaul of government
TThe stunning decision to make John Healey chancellor is the first major shock of Andy Burnham’s government; but it reveals the new prime minister’s real priorities and his desire to end factionalism.
In the run-up to Mr Burnham’s entry into Downing Street, a number of figures were linked to key government posts.
Keir Starmer’s home secretary, Shabana Mahmood, appeared locked in for the role even as she walked through Downing Street on Monday afternoon to find out which job she had taken up.
But Mr Burnham appears to have listened to the concerns of MPs on the left, who were his biggest supporters in taking over as prime minister, and who are unhappy with Ms Mahmood’s handling of economic policy.
As described over the weekend IndependentThere were serious concerns on the left about Ms Mahmood’s support for both tax and benefit cuts, as well as cracking down on immigration.
The previous leader was Ed Miliband from the left of the party, but he was rejected because he could scare the markets. There were also concerns about his staunch views in favor of net zero and his previous leadership tenure.
Instead, Mr Burnham turned to the highly respected Mr Healey as a compromise candidate in a sign that he was not interested in perpetuating the factionalism that bedeviled the Starmer government.
Mr Miliband is instead taking on the task of reforming the Foreign Office. Independentincluding a roadmap for restoring international aid. Meanwhile, in a shock move that will leave some Labor MPs unhappy, Ms Mahmood has remained at the Home Office with the green light to continue to get tough on immigration.
However, it is the choice of the chancellor that will shape this government the most.
Mr Healey had real Treasury experience in past Labor governments, but left his role as defense secretary after Sir Keir Starmer was furious over a £13bn shortfall in defense spending.
His appointment could perhaps be seen as a sign that defense spending will be a priority for the new Burnham government.
After Mr Healey resigned, he harshly criticized the Treasury and complained that they had failed to recognize defense as a driver of growth.
He said: “The Treasury is a paradox: you have some of the best and brightest officials in the Treasury, but you also have a Treasury orthodoxy that is often hamstrung by dynamic government.”
He also complained: “The Treasury, together with the defense department, were actually denying the UK’s rightful commitment to NATO and to our people: still planning, still planning 3 per cent, but not until 2034-35.
“The Treasury still sees defense as a burden on public spending and not as a driver of economic growth as we have shown in two years.”
According to a Downing Street source, the prime minister has made clear that he wants the economy to work better for workers and that he wants an experienced, reliable figure to deliver on that ambition.
They said Mr Burnham and Mr Healey “share the same view, not only on the need to maintain economic stability and current fiscal rules, but also on re-industrialisation, devolution, helping people in a cost-of-living crisis and supporting British employment and British industry to stimulate growth across the country”.
Mr Healey served as economic secretary to the Treasury and financial secretary to the Treasury under Gordon Brown for five years.
The Prime Minister has said he wants to deliver more social housing across the country. Mr Healey, a former housing minister, has long experience in this area. As defense minister, he brought housing for the Armed Forces back into public ownership and encouraged investment in housing for families in the armed forces.
He is also well-respected on the international stage and has established connections with key economic allies in Europe, the Middle East and the United States.
It was an unexpected election, but one that truly pointed the way Burnham’s government would go.
