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Rachel Reeves has been sacked as the Chancellor of the Exchequer.
Newly appointed Prime Minister Andy Burnham fired Ms Reeves on Monday afternoon, soon after he officially took power.
Ms Reeves’ sacking followed that of Deputy Prime Minister David Lammy, housing secretary Steve Reed, and business secretary Peter Kyle earlier in the day.
The BBC reported that Ms Reeves was offered a “big job” within Burnham’s cabinet, but declined.
John Healey has since been named as the new Chancellor and Ed Miliband has been appointed Foreign Secretary as Burnham unveiled his Cabinet on Monday.
Healey, the former defence secretary under Keir Starmer, resigned from his previous role on June 11 after a row over defence spending.
David Lammy and Rachel Reeves both lose out in Burnham’s new cabinetPAHe said taking on the Chancellor role was the “greatest privilege” of his career.
"Together, we will build a new economy, build new hope and advance the working people of this country," he wrote on X.
"Time to get on with the job," he adds.
The first ever female Chancellor reacted to being axed by the former Manchester mayor, pledging her support to her successor and Mr Burnham.
In a post on X, Ms Reeves said: “I wish the very best of luck to my successor, Andy and his cabinet. You have my full support, and I will continue to play my part in helping this Labour government deliver the change the country needs.”
The statement read: “It has been the privilege of my life to serve as the Chancellor of the Exchequer.
“The economy today is stronger, fairer and more resilient because of the choices we have taken as a Labour Government over the past two years.”
Rachel Reeves embraces Sir Keir after his farewell speech on MondayGettyShe added that her tenure saw “stability restored, investment delivered and reform to our economy under way.”
“I said when I was appointed Chancellor that I would judge my time in office if the lives [of] ordinary working class people have been improved. I’m proud to say that they have,” the statement added.
Ms Reeves was expected to lose her job as part of Mr Burnham’s Cabinet shakeup when he was elected as leader of the Labour Party.
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Despite navigating turbulent economic times, including Trump’s tariffs, Ms Reeves struggled to gain the backing of the British public, becoming the most unpopular chancellor in history back in November with ratings of minus 71.
She was the 109th Chancellor to hold the position since it was created and the first female to assume the role.
In her statement she said: “And to every young woman and girl let my time in office show there should be no ceilings on your ambitions, your hopes or your dreams.”