John Healey was appointed chancellor of the exchequer last night as new prime minister Andy Burnham began assembling his government and placing housing among its early priorities.
The former defence secretary secured the key post after weeks of speculation that the choice was between Ed Miliband and Shabana Mahmood.
Healey previously served as housing minister under Gordon Brown and held junior Treasury positions between 2002 and 2007.
Angela Rayner was appointed to her former role as secretary of state for Housing, Communities and Local Government, while Louise Haigh became first secretary of state, chancellor of the Duchy of Lancaster and minister for the Cabinet Office.
TEN-YEAR PLAN
Rayner resigned as deputy prime minister last year after admitting that she had underpaid £40,000 in stamp duty on her Hove purchase.
The appointments followed Burnham’s first Downing Street speech, in which he promised a “circuit breaker for Britain”, more council homes and a 10-year economic plan to be published later this year.
Burnham also launched a £340 million drive to tackle long-term rough sleeping. The opening phase of a wider five-year programme will fund 1,200 homes and intensive support for at least 3,000 people.
The government said work would begin immediately to acquire suitable properties and identify those most in need, with mayors, councils, the NHS and other public services involved in delivery.
Further details are expected before the autumn, while the prime minister is due to announce measures addressing the cost of living tomorrow.
Burnham linked the construction of more council homes with reducing the welfare bill and meeting the government’s fiscal rules. He also pledged to put essential services under stronger public control, reindustrialise Britain and devolve power from Westminster.
SIZEABLE CHALLENGES
Nathan Emerson, chief executive of Propertymark, said: “Over the coming months, there will be sizeable challenges across the wider economy to overcome. Although the year started with quiet confidence in the housing market, there have been sizeable difficulties to contend with in terms of global unease.
“While we have seen inflation progressively start to approach its target and base rates hold steady, there is a much wider picture for John Healey to consider, as he takes on the role of Chancellor of the Exchequer.
“Housing remains fundamental to economic growth, with issues such as Stamp Duty for those buying a property in England or Northern Ireland, as well as taxation frameworks affecting many landlords in the private rented sector, all in need of review and potential restructuring.”
