Andy Burnham was appointed as Prime Minister yesterday, ushering in a new cabinet and potential changes to financial policy.

Burnham, who replaces Keir Starmer as PM and Labour leader, has put forward his intentions to publish a 10-year plan, and has already announced a VAT cut on residential energy bills from 5% to zero from October.

In forming his new cabinet, the PM has appointed John Healey as the new Chancellor of the Exchequer.

His appointment comes as inflation continues to remain above the Bank of England’s 2% target, with data for June being published later this week. Furthermore, he will be tasked with improving GDP, which has remained low in recent months, despite a return to growth in May.

Analysts have stated that the challenge remains unchanged as he replaces Rachel Reeves.

Tax and financial planner at Quilter, Shaun Moore, said: “Healey’s challenge is not just balancing the books, but creating a stable environment where people can plan for the long term without worrying that the rules will change again tomorrow.

"For savers and investors, the real test will not be the appointment itself but the policies that follow. One of the more encouraging developments in recent years has been the growing recognition within government that the UK needs a stronger investment culture.

“While we have not agreed with every proposal designed to achieve that goal, the broader ambition of encouraging more people to invest for the long term is absolutely the right one.”

Angela Rayner has also rejoined the front bench and has been appointed as housing secretary. She previously served in the role under Starmer's Government before resigning following investigations into her tax affairs.

The Government set the target of building 1.5 million new homes by 2029 under Starmer’s leadership, and while there have been issues in reaching this target, partly due to uncertainty following geopolitical events and planning delays, many across the industry are impressed with Rayner’s appointment.

Chair at the Open Property Data Association, Maria Harris, stated: "Rayner’s return to the housing brief should be welcomed across the sector. She has a strong understanding of the challenges facing the housing market, a genuine passion for housing policy, and had already begun building constructive relationships with industry stakeholders before leaving the role. That existing knowledge and engagement should allow her to hit the ground running.

"At a time when the housing market needs confidence and certainty, the priority must be stability and continuity.

"The industry now needs to see the Government follow through on its commitments to modernise the homebuying process through Smart Data and wider digital transformation.”

Chairman at Jackson-Stops, Nick Leeming, said that Rayner’s immediate task must be to "maintain momentum" in the sector, and turn proposals into "practical improvements for buyers and sellers".

He concluded: "Our latest research suggests that greater certainty over home-moving timelines could unlock more than 260,000 owner-occupied homes across England within less than a year. The Government’s proposed reforms to improve upfront information, reduce delays and give people greater confidence earlier in the transaction process therefore have the potential to make a meaningful difference.

"Following repeated changes at the top of the housing department, the market now needs clarity, consistency and a policy direction that is maintained long enough to make a meaningful difference.

"Increasing the supply of new homes must remain a priority, but success should also be judged by whether the wider housing market is working effectively. That means helping transactions progress, allowing housing chains to form and giving people the confidence to move when their circumstances change."

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