John Healey arrives for a cabinet meeting in London, Monday, July 20, 2026.(AP Photo/Kirsty Wigglesworth) John Healey has been appointed Chancellor of the Exchequer as Andy Burnham carried out a major shake-up at the top of government. The former defence secretary replaces Rachel Reeves, who was axed from cabinet along with a host of other Keir Starmer allies by the new prime minister. Other big names returning to the backbenches include David Lammy, Darren Jones, Peter Kyle and Steve Reed. Healey’s appointment came as a major surprise as it was understood that Shabana Mahmood and Ed Miliband were the two frontrunners for the role. Healey, who served as a Treasury minister under Tony Blair, resigned from Starmer’s cabinet last month in protest at the amount of money being made available for the government’s Defence Investment Plan (DIP). Listen to Commons People, the podcast that makes politics easy. Every week, Kevin Schofield and Kate Nicholson unpack the week’s biggest stories to keep you informed. Join us for straightforward analysis of what’s going on at Westminster. Related... Who Is In Andy Burnham's Government – And Who Is Out? Rachel Reeves Sacked As Andy Burnham Axes Keir Starmer Loyalists In Brutal Reshuffle Rents Could Be Frozen Under Moves To Help Struggling Brits, Hints Andy Burnham