Andy Burnham hosted his first Cabinet meeting since becoming Prime Minister, following a huge overhaul which saw Angela Rayner return and John Healey appointed Chancellor11:10, 21 Jul 2026Updated 14:38, 21 Jul 2026Angela Rayner has sensationally returned to Goverment as she joined Andy Burnham's top team at No10 for his first Cabinet meeting.‌Once dubbed Labour's Red Queen Ms Rayner returns to the frontline of Government as Housing Secretary after resigning from the same role in Sir Keir Starmer's cabinet, as well as her jobs as Labour's deputy leader and deputy prime minister, over her tax affairs last year. The Ashton-under-Lyne MP has since been cleared of any wrongdoing by HMRC.‌She was spotted meeting with Mr Burnham in Greater Manchester earlier this year, in a sign she was willing to back his bid for No 10. A self-described socialist, Ms Rayner championed Labour's workers rights package in her previous cabinet role.‌For a full guide to the new Cabinet, click hereThe former Deputy PM is back in government following months of speculation about a leadership challenge.‌Ms Rayner was made Housing, Communities and Local Government Secretary following the general election and championed the landmark Employment Rights Act. A popular figure on the left of the party, she has spoken out against Shabana Mahmood's immigration reforms, branding them "un-British" - but will have to fall in line when she returns to government. It also emerged she had warned Keir Starmer against appointing Peter Mandelson as ambassador to the US in 2024.Ms Rayner's return comes as new Education Secretary Lucy Powell was the first to walk through the door, less than 24 hours after an overhaul which saw many of Keir Starmer's allies dispatched to the backbenches. New Chancellor John Healey took his seat back at the top table, just weeks after he dramatically quit as Defence Secretary. In an extraordinary attack on his predecessor Rachel Reeves and Mr Starmer, he accused the Treasury of failing to provide the funds needed to defend the nation. He is now in charge of that department, while Wes Streeting - who also quit last month in protest over Mr Starmer 's leadership- takes on his old job.‌Ed Miliband attended as Foreign Secretary for the first time, while Shabana Mahmood remains in post as Home Secretary, a week after setting out sweeping changes to the asylum system. In a wave of changes announced late yesterday, Yvette Cooper - who has previously led the Home Office and the Foreign Office - was shifted to Health Secretary.Chancellor of the Duchy of Lancaster Louise Haigh and Education Secretary Lucy Powell are among those returning to the Cabinet. New faces include Mr Burnham's allies Anneliese Midgley and Energy Security Secretary Miatta Fahnbulleh.The Prime Minister, who took office on Monday, pledged to set out the biggest changes the UK has seen in 40 years. In a speech outside No10, he said: "Let us make this the moment when Britain starts to believe again, the moment we bring back hope.."‌Those remaining in the same jobs as before include Transport Secretary Heidi Alexander, Culture Secretary Lisa Nandy and Pat McFadden, who continues to lead the Department for Work and Pensions (DWP).But this was the first Cabinet meeting since Labour came to power that did not include Rachel Reeves, David Lammy, Peter Kyle or Liz Kendall. They were removed in one of Mr Burnham's first acts as Prime Minister, along with Starmer allies Steve Reed and Lord Richard Hermer.‌On his first day, Mr Burnham said he would be seeking to tackle rough sleeping, stating in his first speech: "I will soon go through that door behind me and issue my first instruction to end rough sleeping in our country. It's about putting the right values and the right standards at the heart of government."And early on Tuesday morning the government announced an £850million tax cut on energy bills to help ease the cost-of-living crisis. From October 1, energy bills will be VAT free, saving households around £45.‌The government said move will be funded in part by scrapping Mr Starmer's digital ID project, which had been estimated to cost around £600 million-a-year over three years.The Prime Minister said: "I said I wanted to give people breathing space, and that's what I'm announcing on my second day as Prime Minister. We're taking immediate action to cut taxes on energy bills, put more money in people's pockets and bring back hope."And Mr Healey said: "For too long, too many people have struggled with the cost of living. Today's energy tax cut will give families some breathing room on bills, and provide some reassurance this winter.Article continues below"This measure is funded this year from cancelling the digital ID programme, and it will help bring down inflation while supporting households in every postcode."