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 was given the key post despite weeks of speculation that it was between Mr Miliband and Shabana Mahmood.
Healey previously served as housing minister under Gordon Brown and held junior Treasury positions between 2002 and 2007.
And in a shock move Angela Rayner was appointed to her former role as Secretary of State for Housing, Communities and Local Government while Louise Haigh was appointed First Secretary of State, Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office.
TEN-YEAR PLAN
Rayner resigned as Deputy PM last year after admitting she underpaid £40,000 in stamp duty on her Hove purchase.
Matthew Pennycook MP will remain as Minister of State in the Ministry of Housing, Communities and Local Government. He will also attend Cabinet.
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 £340m 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 building 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, CEO of Propertymark, says: “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.”
And he adds: “Propertymark looks forward to working with Angela Rayner as she returns to her former role as Housing Secretary. Housing must remain at the centre of the political agenda to deliver much-needed progress.
“With an already demanding programme of new legislation to implement across the sector, alongside the significant challenge of delivering the key manifesto pledge to build 1.5 million new homes across England, the urgency of meeting future housing demand has never been greater.
“Further priorities should include the ongoing reform of the home buying and selling process, as well as making long-overdue progression towards a comprehensive regulatory framework for property agents.”
