John Healey becomes chancellor weeks after shock resignation from defence job
John Healey has been appointed as the new Chancellor of the Exchequer by Prime Minister Andy Burnham. This appointment follows Healey's high-profile resignation as defence secretary just over a month ago due to disagreements over defence funding.
Why it matters
The appointment signals a shift in the UK government's economic and defence priorities during a period of political instability.
Image source, EPA By Brian Wheeler Political reporter Published 20 July 2026, 19:24 BST Updated Just now John Healey - who has been announced as Andy Burnham's Chancellor of the Exchequer - is seen as the ultimate safe pair of hands.
Which made the 66-year-old's resignation as Sir Keir Starmer's defence secretary just over a month ago all the more shocking.
Healey's assessment of the government's much-delayed defence investment plan - that it fell "well short of what is required for defence and the country at this dangerous time" - was devastating and undoubtedly hastened Sir Keir's departure from Downing Street.
Now he's in charge of the funding not just of defence - but of every arm of government.
He replaces Rachel Reeves, who had served as Sir Keir's chancellor since Labour's 2024 landslide election win.
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