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Tuesday 26 July 2026

In your briefing today:

  • Andy Burnham arrived in Downing Street promising change and hope, and immediately set about a ruthless purge of his predecessors’ allies

  • This morning, he’s expected to announce the removal of VAT on energy bills

  • Donald Trump has imposed 50% tariffs on Canadian goods

  • FIFA is investigating the trouble after the World Cup final

TODAY’S WEATHER

⛅️ A dry, sunny day for Glasgow, Edinburgh, Aberdeen and Inverness with temperatures into mid-20s in the central belt, and high teens for the north. London will have a pleasant, warm day too. (Here’s the UK forecast).

THE BIG STORIES
Burnham opens with a promise of hope, and a purge | Middle East crisis deepens | US hits Canada with tariffs

📣 Andy Burnham is settling in to Downing Street having promised to “bring back hope” to Britain.

Among his first acts: he surprised his party and the City of London by appointing John Healey as Chancellor of the Exchequer. The former defence secretary, who resigned last month over defence spending, will now be expected to increase funding for the armed forces - although he said his “first duty” would be to ensure fiscal control, in words clearly intended to soothe bond markets.

And the former Mayor of Greater Manchester also unveiled a sweeping purge of ministers loyal to Keir Starmer.

He’s expected to unveil some policy today, starting with a decision to remove the current 5% VAT from household electricity bills, which should save households an average of £45 a year each. (BBC live coverage)

  • Six signals of what’s to come from a busy first day in Downing Street ⬇️

  • New York Times: Burnham’s Day 1 as Prime Minister: A homeless shelter, a palace and Downing Street (New York Times)

  • Andy Burnham’s main policy pledges and what they mean for you (Independent)

  • “Burnham's brutal purge as Labour lurches to the Left: On Day 1, PM vows biggest political changes in 40 years, refuses to rule out tax hikes and puts fraudster in charge of his agenda” (Mail)

  • Briefing wars: how Labour ministers tried, and failed, to get into Cabinet (Guardian)

  • Burnham has invited Donald Trump to Manchester (Independent)

  • Douglas Alexander to remain Scottish Secretary (BBC)

📣 The crisis in the Middle East continues to escalate. The US launched a fresh wave of attacks on Iran, the 10th consecutive set of night-time raids. Iran struck two tankers in the Strait of Hormuz. (BBC)

  • The US and Iran are back to bombing every day in their ongoing struggle to control the Strait of Hormuz (AP)

  • Israel is building a miles-long earth wall inside Gaza (AP)

📣 Donald Trump has, meanwhile, imposed 50% tariffs on Canadian goods, claiming that Canada had unfairly discriminated against American cars, alcohol and dairy products. There are concerns the move will unleash a new wave of inflation and economic chaos in the two countries, whose economies are tightly interlinked. (AP)

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AROUND SCOTLAND

📣 Fire crews remain at Arthur’s Seat in Edinburgh after the large wildfire there. (Mail)

  • Does Scotland have the helicopters it needs to fight wildfires? (BBC)

📣 Scotland’s prison inspectors have flagged the “insidious consequences of overcrowding” in a new report. (BBC) (Read the full report)

📣 The Scot who won World’s Strongest Man three times in a row is to join the cast of television show Gladiators. He becomes the second Scot on the programme. (BBC)

AROUND THE UK & WORLD

📣 Influencers Andrew and Tristan Tate are fighting their extradition back to the UK to face charges including rape and sex trafficking. (WSJ)

📣 The UK’s water industry has warned the UK will not have enough water for future datacentres, in what is being seen as “stark criticism” of the government’s AI growth plans. (Guardian)

📣 Joshua Kerry, 28, has been charged with the murder of former Tory MP Ann Widdecombe. (Mirror)

SPORT

⚽️ FIFA is launching an investigation into the scenes after the World Cup final, when Argentinian players launched attacks on the Spanish winners. (BBC)

⚽️ Football is mourning the death of Kevin Keegan at the age of 75. Keegan was one of the sport’s most charismatic players and managers. (BBC)

⚽️ Celtic’s Daizen Maeda has opened talks with Ipswich Town. (Daily Record)

⚽️ Rangers have drawn Jagiellonia Bialystok in their first Europa League qualifier, while Hearts, Hibs and Motherwell have learned the identity of their potential first European opponents this season. (Daily Record)

IDEAS
Andy Burnham as Prime Minister: six signals of what’s to come from a busy first day in Downing Street

We did not see this coming.”

🗣️ One of the most impressive aspects of Andy Burnham’s first day was the extent to which he wrong-footed the pundits.

He delivered a shimmy that, in wrongfooting both the Parliamentary Labour Party and all of Fleet Street, would have pleased Messi himself, by appointing John Healey as chancellor when Ed Miliband or Shabana Mahmood had been far more keenly tipped to land the job.

“We did not see this coming,” one Labour MP told the Guardian, adding - in a heroic leap of logic: “But that is probably a sign that it is a good decision.”

There were messages of substance to take away in a day of intrigue in Westminster, where the incoming Prime Minister attempted to signal - in a number of ways - that he’d be doing things differently.

  1. The new Prime Minister’s first speech: You’ll hear, a lot, that the new Prime Minister loves his poetry: he wrote to the Guardian to defend Philip Larkin in 1991, and says that Shakespeare taught him to build political speeches through cadence and emotional force.
    He knew the tonality of his first words as PM were as important as the words themselves. There was none of Starmer’s gloomy talk of facing down the challenges of an insecure world, per his predecessor. Nor was Burham’s speech very long (read the full text / 🎥see it).
    Instead, there was an acknowledgement of the incongruity of yet another PM walking up Downing Street, a promise of change and of a different sort of politics to achieve it, nods towards public ownership and reindustrialisation, and the promise of a ten-year plan, which hadn’t appeared on many bingo cards.
    There was also an immediate promise to “end rough sleeping in our country” (meaning England) - which immediately had journalists in his old stomping ground, Manchester, reaching for their notes. Playing “Burnham bingo”, Rob Williams reckoned he’d heard it all before.
    It was delivered without notes, and without a lecturn, and projected as if at a hustings in a high street: this was as much about selling his leadership to a country that hasn’t seen much of him as it was about formally accepting the job.

  2. John Healey as Chancellor. This was a surprise: the former defence secretary quit Keir Starmer’s cabinet over a lack of funding, helping hasten his demise. Yet despite his experience as a Treasury minister under Tony Blair, nobody expected to see him in Number 11.
    As David Maddox explains, it might be that the wide support among fellow MPs that the non-factional Healey enjoys - in contrast to the more right-leaning Shabana Mahmood - got him the nod.
    What will he do? In the statement announcing his appointment, defence did not get a mention among his shared priorities with the PM. In terms of driving economic growth, it is unlikely to figure highly.
    Yet every observer thinks his appointment as chancellor signals we’re about to spend a lot more on defence, given his history. Sky’s Ed Conway sets out the welfare vs warfare state challenge neatly in this clip.

  3. Shabana Mahmood as Home Secretary. Although Mahmood had been hotly tipped to become Chancellor, and had lobbied for it, there was also the suggestion she would not be unhappy to stay put. So she has. Her line on immigration is far tougher than many of her Labour colleagues would like - but will matter in the battle with Reform that is to come. That she stays in the job means those reforms are more likely to stick.

  4. Ed Miliband as Foreign Secretary. The other Chancellor candidate who swung - lustily - at that job and missed. The former Labour leader described his new job as the “honour of my life”, but his appointment has raised eyebrows among those who point to his record - in 2013, he was a leading voice against action in Syria after Bashar al-Assad killed 1,400 civilians - and wonder about his ability to work with the Trump administration. It’s assumed Miliband’s appointment will signal a tougher stance on Israel, and a continued arms-length approach to US demands for support in the war against Iran.

  5. A cabinet clear-out. This was also a ruthless cull. Keir Starmer’s closest allies lost their jobs - Chancellor Rachel Reeves, of course, but also Peter Kyle (business), Liz Kendall (science), Darren Jones (admin) and Steve Reed (housing) were binned. David Lammy (justice), Lord Hermer (Attorney General), Jo Stevens (Wales), Hilary Benn (Northern Ireland) and Baroness Champman (International development) also left their roles. This was a decisive break from Starmer’s policies, and team, across the board.

  6. Some new (old) faces. Among a big ministerial intake are several of Burnham’s allies: people who have worked with him either in Manchester or helped get him elected in Makerfield. Louise Haigh, who gained brief notoriety when she was sacked over an historical fraud conviction, is his fixer as Chancellor of the Duchy of Lancaster. Annaelise Midgeley, another close ally, becomes Chief Whip. And Lucy Powell, the Manchester Central MP, becomes Education Secretary. Heidi Alexander, who worked with Burnham in his leadership races, remains Transport Secretary. The former King of the North has rewarded those who supported his march on the south.
    - The BBC has a full list of who’s in the cabinet.

👍 That’s your Early Line for the day

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