Chancellor Rachel Reeves has urged Andy Burnham to keep her economic policies in place if he becomes prime minister, insisting they are “beginning to bear fruit” – even as reports suggest he could demote her to a junior cabinet role.
Reeves publicly backed Burnham to replace Sir Keir Starmer, who announced he was standing down on Monday after losing the support of Labour MPs. The Greater Manchester mayor could take over as soon as 17 July if no other contenders emerge – and so far he is the only one.
“Reeves urges Burnham to keep her economic policies amid reports he may demote her if he becomes PM.”
But the chancellor’s future is uncertain. Burnham is reported to be considering Ed Miliband, Wes Streeting or Shabana Mahmood as possible replacements for Reeves. Some on the left of the Labour Party have called for her fiscal rules to be relaxed to allow more spending on defence and other priorities.
Speaking at the British Chambers of Commerce (BCC) conference, Reeves told Sky News journalist Sophy Ridge: “I hope that whoever is chancellor, in the future… sticks to what I’m doing because it is beginning to bear fruit.”
She insisted Burnham backs those rules. “Andy has been really explicit – he backs those fiscal rules,” she said, adding that she had worked closely with him as mayor on “fiscal devolution” – transferring more powers to English regions – something he is committed to.
Reeves claimed she had brought “stability” to the economy since becoming chancellor and said she was “proud” of her record on inflation and growth. “Yes, there is more to do,” she said, pointing to further reforms to business rates and fiscal devolution in the budget later this year.
Asked whether she accepted there needed to be a change at the top, Reeves said: “Clearly we need to do more to connect to the country to tell a better story of what we’ve done in government but also set out the vision of where we want the country to go.”
She added: “That is what Andy will be able to provide as our next prime minister. He is a great communicator, he’s got a great track record of delivering in Greater Manchester, and I have no doubt he will bring that to the position of prime minister.”
The chancellor’s plea comes as Starmer’s resignation, prompted by a slew of senior cabinet resignations, opens the door for a new leader – one who may not keep her in her current role.