Andy Burnham kicked off a Cabinet bloodbath today as he axed Rachel Reeves along with a slew of Keir Starmer loyalists.The new PM has started reshaping his team after admitting in his first speech to the country that the Labour Government 'needs to be better'.The Chancellor confirmed she has lost her battle to cling on under Mr Burnham, saying she wanted girls to know there was 'no ceiling' on their ambition. She is understood to have turned down another job in Government. David Lammy, Steve Reed, Peter Kyle and Attorney General Lord Hermer have also been ousted.Mr Reed said he was 'disappointed' to be going from his Housing Secretary role, and swiped that he 'hoped those who did not show loyalty to Keir will now show it to you'. Outgoing deputy PM Mr Lammy bemoaned that he 'would have been proud to continue serving in Cabinet'. All eyes are now on whether Ed Miliband will be made Chancellor.The Left has been pushing hard for the appointment, despite alarm from businesses and moderates. Markets have been calmer following speculation that Shabana Mahmood will get the role instead, but any surprises could prompt a panicky response.Mr Miliband dropped a broad hint that he will be leaving the Department for Energy and Net Zero in a speech to staff this morning - although he insisted he did not know what decisions Mr Burnham had made. Meanwhile, the fates of big beasts such as Angela Rayner, Wes Streeting and Yvette Cooper are due to be decided.The sackings are under way after Mr Burnham used his Downing Street debut to hint at a lurch to the Left.Watched by an adoring crowd of aides and supporters, Mr Burnham said he wanted to put services under 'stronger public control' and 'reindustrialise' with a 'ten-year plan'. He repeated his view that Britain has been heading in the wrong direction since Margaret Thatcher was PM. He made clear his first instruction to officials would be to end rough sleeping, and revealed there would be some help on the cost of living announced tomorrow – but stopped short of giving any details. Speaking to reporters afterwards, Mr Burnham also signalled he intends to bring back his 'death tax' inheritance raid to fund social care reforms. And he confusingly left the door open to introducing a 50p top rate of tax, even though he has committed to the Labour manifesto that ruled the move out. On another momentous day in UK politics:The EU has led international welcomes to Mr Burnham, who has previously backed rejoining the bloc; Mr Burnham has revealed his Alzheimer's-hit father does not know he is going to be PM;Eco-tycoon Dale Vince was spotted in Downing Street, amid confusion over whether the Government will allow more drilling in the North Sea; The new PM has hinted at an earlier end to the freeze on the basic rate tax threshold, without saying how it would be funded; Mr Burnham will become the first openly Catholic PM, with work-arounds put in place to protect the Church of England; Loudspeakers have been banned near Downing Street today after protesters blighted Sir Keir's speech announcing his resignation.Andy Burnham has launched his Cabinet reshuffle after making his Downing Street debut David Lammy and Rachel Reeves were early casualties in the reshuffle, hours after they watched Keir Starmer's farewell speech outside No10 Ms Reeves is thought to have turned down another less senior job in GovernmentMr Burnham and wife Marie-France van Heel waved to supporters as they entered No10 Mr Burnham shunned a lectern in his first speech after being officially installed as PM The former Greater Manchester Mayor saved a kiss for his mother, Eileen, who was there to see him speak The new PM was greeted outside No10 by crowds of aides and supporters, who had gathered to hear his first speech to the country The new residents of Downing Street were applauded into the building by staffAndy Burnham was officially installed as PM by the King today after Keir Starmer bowed out Keir Starmer is giving a farewell address outside the famous black door of No10, just two years after winning an extraordinary election landslide