Greater Manchester Mayor Andy Burnham has sounded the alarm over the balance and direction of Labour’s cabinet following a dramatic reshuffle triggered by Angela Rayner’s resignation. The shake-up, which has sent ripples through the party, comes after Rayner admitted to mistakenly underpaying stamp duty on a seaside flat—a breach that led to her stepping down as housing secretary, deputy prime minister, and deputy leader of the Labour Party. Her departure has not only sparked a contest for her replacement but also exposed simmering tensions over party unity, regional representation, and internal discipline.
Rayner’s exit, which she attributed to an honest error in tax reporting, was confirmed by an independent ethics adviser who found she had acted in “good faith.” Nonetheless, the adviser emphasized that “the responsibility of any taxpayer for reporting their tax returns and settling their liabilities rests ultimately with themselves,” according to BBC. The fallout from this episode prompted Prime Minister Sir Keir Starmer to act swiftly, reshuffling his top team in what Defence Secretary John Healey described as a “resetting” of Labour’s leadership.
David Lammy stepped in as deputy prime minister, Yvette Cooper moved to foreign secretary, and Shabana Mahmood became home secretary. Notably, Lucy Powell lost her position as Leader of the House, a move that further fueled concerns among northern MPs about the party’s perceived London-centric leadership. Burnham, in an interview on “Sunday with Laura Kuenssberg,” didn’t mince words: “I am concerned about the balance, and I think you know, we need to use the deputy leadership contest to discuss some of these things.” He stressed the importance of ensuring that voices from northern England aren’t drowned out, adding, “Somebody from these parts I think would be great. Louise Haigh, possibly Lucy Powell, who I think did a brilliant job in government.”
The mayor’s remarks resonated with ongoing debates about inclusion and unity within Labour’s ranks. The reshuffle has reignited old arguments over how the party handles dissent, particularly after disciplinary actions were taken against MPs like Rachael Maskell for opposing government policies on issues such as winter fuel payments and disability benefits. Burnham was clear in his disapproval, stating, “I see good people, good MPs, losing the whip, people like Rachael Maskell. That doesn’t seem fair to me. It didn’t happen in the governments I was in, in Gordon Brown’s government or Tony Blair’s government. You know, we need a different style here, so that everyone is included and we pull together.”
The contest for the deputy leadership is shaping up to be a pivotal moment for Labour. While the roles of deputy prime minister and deputy leader are technically separate, Rayner had held both simultaneously, and her popularity among grassroots members had made her a bridge between Downing Street and the wider party. As speculation mounts over who will step into her shoes, Labour MP Emily Thornberry has publicly considered a run, telling the BBC, “It’s really a question of what can I bring to it. Do you have the strength? Do you have the experience? Can you actually make a difference?” Thornberry acknowledged the geographical debate but insisted that the focus should be on candidates’ qualifications and ability to enact change, not simply their postcode.
Defence Secretary Healey, meanwhile, has urged the new cabinet to “go up a gear” and connect more deeply with voters. He praised Rayner as “an inspiration to many, particularly working-class women,” and added, “Any government is stronger with Angela Rayner but we’ve got a good new team in place and that’s our job.” Healey also rejected claims that Lammy’s appointment as deputy prime minister signals he is the front-runner for deputy leader, emphasizing, “They’re two separate jobs, two very important jobs. The deputy leader of the Labour Party is an important job and an important vote for Labour Party members.”
Yet not all within Labour’s ranks are convinced by the reshuffle or the leadership’s direction. Some backbenchers, speaking to PA Media, criticized the changes as “almost entirely skin deep and cosmetic,” with one saying, “Angela made an unbalanced Cabinet look slightly more balanced… Now even the semblance of that illusion is gone. Maybe for the party overall that’s for the better in the long run.” Liverpool Riverside MP Kim Johnson was even more scathing, likening the reshuffle to “moving deck chairs on Titanic” and accusing the leadership of “creating a London elite.” She lamented, “The Labour Party is a broad church, this is certainly not represented with this reshuffle.”
As Labour’s National Executive Committee (NEC) prepares to meet to finalize the details of the deputy leadership election, the party faces a delicate balancing act. The contest could expose deeper rifts between its progressive and centrist factions, especially as candidates like Louise Haigh and Lucy Powell—both with strong northern ties—are touted as potential unifying figures. Burnham’s endorsement of these candidates is rooted in a desire to counteract what he calls the “London centricity” of Labour’s current leadership and to restore a sense of regional balance.
Meanwhile, Angela Rayner faces additional scrutiny over whether she will accept a severance payment of up to £16,876, a benefit typically granted to departing cabinet ministers. New Labour rules, set to take effect in October, would allow the prime minister to deny such payments to those found to have committed a “serious breach” of the ministerial code. However, because Rayner’s resignation occurred before these rules come into force, the decision rests with her. The issue has become a point of contention, with some in the Opposition calling on her to reject the payout as a gesture of accountability.
For Sir Keir Starmer, the challenge now is to draw a line under the recent turmoil and rally his team ahead of the party conference. He has instructed his newly reshuffled team to focus on tangible delivery, telling them to “demonstrate to people that we can as government change their lives, make them feel better off and make them feel more secure,” as reported by BBC. But with the deputy leadership contest looming—and with questions swirling about party unity, regional representation, and internal discipline—the coming weeks promise to be anything but quiet for Labour.
As the dust settles from the reshuffle, Labour stands at a crossroads, its internal debates on full display and its path forward uncertain. The party’s ability to resolve these tensions and present a united front could very well determine its fortunes in the months ahead.
