The first and most important decision for new prime minister Andy Burnham was his choice of John Healey as chancellor of the Exchequer, replacing Rachel Reeves who had resigned from the cabinet after reportedly turning down an alternative senior role.

Healey had previously resigned from the last cabinet after a major disagreement with the Treasury and Reeves over funding for defence spending, the final catalyst in the run-up to Sir Keir Starmer’s resignation as prime minister. As chancellor he will now be head of the Treasury and responsible for fiscal decisions, including of course defence.

His first Budget will be closely watched with the public struggling with the cost of living, flagged as the major priority for the new PM Burnham, while businesses are concerned about rising tax bills and weak economic growth.