Andy Burnham Begins Appointing Top Team
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Rachel Reeves is out as chancellor, as new Prime Minister Andy Burnham begins forming his top team
Reeves was offered a "big job" in Burnham's cabinet but declined, Chris Mason reports. Meanwhile David Lammy, Steve Reed, Peter Kyle, Liz Kendall and Lord Richard Hermer are also no longer in government
In his first speech as PM, Burnham promises a 10-year plan and says cost of living measures will be outlined from tomorrow – here are some of his options
"This moment will be a circuit breaker for Britain," he says, while pledging to end rough sleeping and build more council homes – BBC Verify looks at his record on rough sleeping as Greater Manchester mayor
The new PM says he will redistribute power out of Westminster – how this could work in Wales, Scotland and Northern Ireland
Burnham and US President Donald Trump have spoken, marking his first call with a foreign leader
Earlier Keir Starmer formally resigned, saying that he was leaving "with good grace" and "a smile" – Henry Zeffman analyses the speech
Edited by Rorey Bosotti and Ben Hatton, with Chris Mason and Henry Zeffman reporting from Downing Street
Jo Stevens says that it has been an "honour" to serve as Welsh secretary.
In a message on X, she says that she wishes Burnham and her successor "the very best in their new roles".
She also pays tribute to Keir Starmer, who she says took Labour "from comprehensive rejection by the country to the greatest general election victory in my lifetime".
"I am proud to have served under him, and to call him my friend," she adds.
Bernd Debusmann Jr
White House reporter
A White House official has confirmed to the BBC that President Trump spoke to Prime Minister Burnham this morning.
We don't know what exactly was said. In this administration, the White House often avoids formal read-outs of the call, instead letting the president express his thoughts directly through Truth Social.
The two have much to discuss. Already, we saw Trump write on Truth Social that "the people of Aberdeen are dancing in the streets" over a decision to open the North Sea for oil drilling – a topic he brings up frequently.
With the war in Iran and efforts to secure the Strait of Hormuz seemingly heating up, Trump will also likely be hoping that Burnham takes a more active role in the conflict than Keir Starmer did. More than anything else, that issue soured Trump's feeling towards Starmer.
And while Trump has had clear policy differences with the Labour government – notably over immigration – the US president is a man who is clearly enamoured with British culture and with the country as a whole, which could provide an opening for British "soft power" diplomacy to create a connection between the two men.
Liz Kendall says she will no longer be serving as science and technology secretary.
In a statement shared on X, Kendall says that it has been a "privilege" to be in government.
She says: "I wish whoever takes on the science and technology portfolio the very best for the future."
She adds that Andy Burnham will "take this country from strength to strength. I stand ready to support him in any way I can". 
Raphael Sheridan
Economics producer
The interest rate on a form of UK government debt has risen above 5% for the first time since Thursday.
Andy Burnham told journalists today that the government would “stick to the fiscal rules” on government borrowing but would “use any flexibility within them”.
The government’s fiscal rules are self-imposed and were created by previous Chancellor Rachel Reeves.
Burnham added: “None of this is about taking risks with the economy.”
Shortly after those comments were made public, the interest rate on 10-year government debt jumped to above 5%.
Lord Richard Hermer has announced he is out as attorney general after two years in the role.
In a statement on social media, he says he was "so lucky" to be part of Starmer's team, adding that he will continue to support Burnham's government "from the backbenches".
"Andy and his team know they have my utmost support and I wish them nothing but success," he adds.
Dominic Casciani
Home and legal correspondent
David Lammy’s departure as justice secretary raises challenging questions for continuity in one of the most complex government departments which has some of the most difficult workloads.
Despite the Ministry of Justice’s centrality to national and community security – running prisons, probation and the courts to keep the public safe from criminals – there have now been 11 Justice Secretaries in 10 years.
Each new minister needs months to get up to speed with the enormous workload and the daily crises the department faces. In policy terms, there's a real question now whether a radical reform to the criminal courts to solve unprecedented backlogs will continue, or will be scrapped.
That plan includes curtailing the ancient right to trial by jury. It is a deeply opposed by many who work in or care about the criminal justice system.
Starmer's plan to radically change the sentencing of criminals and how prisons attempt to rehabilitate them is already well under way. 
Sima Kotecha
Senior UK correspondent
David Lammy has gone as Justice Secretary – just weeks before the new Sentencing Act 2026 is supposed to be enacted.
From September, thousands more inmates are set to be released to create more space in our prisons. More criminals will serve sentences in the community.
Some insiders at the Ministry of Justice have been critical of David Lammy's time as Justice Secretary, sometimes feeling as if his role as Deputy Prime Minister was given priority.
His supporters would vehemently disagree. His background and knowledge of the justice system have been appreciated by those closer to him.
Earlier we heard that Lord Timpson had resigned from his role as prisons minister, meaning we will have two significant roles potentially filled by people new to the department, just weeks away from new legislation coming into play.
Conservative shadow chancellor Mel Stride tells the BBC that former Chancellor Rachel Reeves was "vulnerable" to being sacked, calling her departure "inevitable".
Stride says that being the first female chancellor was a "considerable achievement" and admits he "rather liked her in many ways as a person".
But her legacy is one of "wholesale mismanagement of our economy" and "leaving us with more challenges than opportunities going forward", he adds. 
Chris Mason
Political editor, at Downing Street
Rachel Reeves was offered a "big job", as a friend put it, but declined and has now left the cabinet.
Update: I now understand the job Reeves was offered was in the cabinet.
Jack Fenwick
Political correspondent
Andy Burnham has said he will be "looking at" the tax-free personal allowance ahead of his first Budget in the autumn but stressed that changing it would be "difficult" in the current economic circumstances.
The new prime minister said he had "heard issues related to the personal allowance more than anything on the doorsteps in Makerfield" and said "it's people on the lowest incomes perhaps who've most been affected".
He added: "It's difficult because changing the threshold is not without significant consequences but I'm looking at it."
Asked if he could pay for a change by reintroducing the 50p top rate of tax, he said it was "premature to say that".
Burnham also said he "does not want to leave office" without reforming the social care system. He said that Westminster's record on the issue over the last 30 years was "not defensible".
The new prime minister added: "How many people have lost their homes and their savings in that time? We need to face it and fix it."
Speaking to reporters shortly after his speech on the steps of Downing Street earlier, he said he was "ready to use some of my political capital" on the issue.
Burnham recommitted to sticking to the previous government's fiscal rules but said he would "use any flexibility within them".
He added: "None of this is about taking risks with the economy".
Rachel Reeves wishes the "very best of luck" to her successor at the Treasury.
In her post on X, she says it "has been the privilege of my life to serve as the Chancellor of the Exchequer".
She goes on to say: "To every young woman and girl let my time in office show there should be no ceilings on your ambitions, your hopes or your dreams.
"I wish the very best of luck to my successor, Andy and his cabinet. You have my full support, and I will continue to play my part in helping this Labour government deliver the change the country needs."
Rachel Reeves is out as chancellor, she has announced on X.
"I wish the very best of luck to my successor, Andy and his cabinet," she writes.Jack Fenwick
Political correspondent
Peter Kyle has been sacked as business secretary, BBC News understands.
Lammy says in a statement on X that it has been the "great privilege of my life" to serve in Starmer's government as foreign secretary, justice secretary and as Britain's first black deputy prime minister.
As foreign secretary and deputy prime minister, Lammy says: "I helped rebuild Britain’s relationships with our European allies after the catastrophic Brexit years."
He says he is proud of what the government has achieved and he will continue to serve the people of Tottenham and "support this Labour government from the backbenches".
David Lammy, Keir Starmer's deputy prime minister, has confirmed that he is not part of Andy Burnham's government.
He says on X: "I would have been proud to continue serving in Cabinet. But a new Prime Minister is entitled to build his own team, and I wish Andy Burnham and the new Cabinet every success." 
Faisal Islam
Economics editor, at Downing Street
The new PM vowed that help on the cost of living, including how it is paid for, will come tomorrow.
It is much earlier than expected, and explains why he was in the Treasury at the weekend.
This could be a notable switch in taxes towards consumers, but the implication is that what is given away would be raised elsewhere.
The new chancellor will be working through the night. These are the sort of announcements normally left until Budgets.
He also said there would be a 10 year plan for the country and the economy later this year, likely to flesh out his wider plans on decentralisation and devolution.
His first priority going through the doors, he said would be a national plan to end rough sleeping.
In his letter to Burnham, external, Steve Reed says that former PM Keir Starmer "showed loyalty" in appointing him to the cabinet.
"I make no apology for returning that loyalty," Reed adds.
"It's what is expected of functioning teams and I hope those who did not show loyalty to Keir will now show it to you."
Steve Reed is out as housing secretary, following Andy Burnham's appointment as PM.
In a letter to Burnham shared on X, Reed says: "I am disappointed to be leaving government now. I wish your new team every success."
Joshua Tindall
Political journalist
The Conservative Party has issued a response to Andy Burnham pledging to end rough sleeping.
Shadow housing secretary James Cleverly says "there is precious little detail on how this will be paid for".
"Burnham must come clean on what other MHCLG programmes have been salami-sliced to fill the gap," he adds.
“In Manchester, Burnham promised to end rough sleeping, but failed because he didn’t do the hard work necessary. Now, again, he is making pledges without any plan for delivery."
“If he is really serious about Government, he should lay out proposals cut welfare, fund defence and get Britain working again. The Conservatives are the only party that have done the hard work and set out the plan to do that.”
Madeleine Lake
Live reporter
We've had reaction from across the UK political spectrum to Andy Burnham becoming the new prime minister.
Here's what's been said so far:
Conservative leader Kemi Badenoch says she wishes Burnham success, but adds that he must not "repeat the mistakes of Keir Starmer's premiership".
Lib Dems leader Ed Davey has expressed disappointment that Burnham did not mention much on "social care, on Europe, or on protecting our precious natural environment", and that "Britain can't wait much longer".
The Green Party say in a post on X that it's "so much for a fresh start with Burnham", with party leader Zack Polanski writing hope isn't brought back by "burning the planet".
Reform UK leader Nigel Farage has again called for an election, saying Burnham can't "be allowed" to make huge changes "without a mandate".
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