LONDON, July 20, 2026 (BSS/AFP) - Britain's new Prime Minister Andy Burnham on Monday appointed John Healey, who was defence secretary under his predecessor, to the top cabinet job of finance minister, Downing Street said. Burnham, who became prime minister earlier in the day on the promise of bringing stability and reducing homelessness, sacked Rachel Reeves as chancellor and instead picked Healey, a Labour party veteran who has previously served in economic briefs in more junior positions. Healey piled pressure on former prime minister Keir Starmer last month when he announced he was stepping down as defence secretary in a stinging criticism of the government's defence budget -- and the Treasury, which he will now oversee. He will be tasked with boosting Britain's sluggish economy amid strict financial rules set by Reeves to balance government spending with revenue, and promises by the previous administration not to raise taxes. Markets showed some signs of unease on Monday before Healey was appointed. UK government bond rates rose after Burnham told British media there could be some "flexibility" allowed under the government's balance-budget rules -- which he insists he intends to uphold. Earlier on Monday, Burnham announced his aim to set into motion a 10-year plan to ease cost-of-living pressures and end sleeping rough on the streets. Healey will also face the daunting challenge of finding œ4.7 billion ($6.3 billion) over the next four years to fill a funding gap in Starmer's Defence Investment Plan and further boost defence spending to match NATO ambitions. The 66-year-old politician was well-regarded as a defence secretary, conducting high-profile visits to Ukraine and NATO allies. Blunt in his assessment of the state of Britain's armed forces, Healey was a vocal advocate for overhauling the military infrastructure, boosting defence spending and tougher responses to Russian aggression. First elected as MP in 1997, he served in junior ministerial positions in the Treasury under Tony Blair, as a local government and housing minister under Gordon Brown, and later held health and housing portfolios in opposition.