Chancellor Rachel Reeves has publicly pleaded with the man expected to become the next prime minister to keep her in the job – and to stick to her economic plan. Speaking at the British Chambers of Commerce (BCC) conference, Reeves threw her support behind Andy Burnham, the former Greater Manchester mayor who is the only contender to replace Sir Keir Starmer after the prime minister announced he was standing down on Monday. But Burnham is reportedly considering Ed Miliband, Wes Streeting or Shabana Mahmood as possible replacements for Reeves – a demotion that would sideline the woman who has overseen the Treasury since Labour came to power.
“I hope that whoever is chancellor, in the future… sticks to what I’m doing because it is beginning to bear fruit,” Reeves told the conference, hosted by Sky News journalist Sophy Ridge. She insisted she would not pre-empt Burnham’s choice of chancellor, but stressed they had worked closely on “fiscal devolution” – transferring more powers to English regions – something he is committed to. “Andy has been really explicit – he backs those fiscal rules,” she said, referring to the rules designed to ensure day-to-day spending is funded through tax revenue by the end of the Parliament, only borrowing for capital investment and reducing debt as a proportion of GDP.
“Rachel Reeves urges Andy Burnham to keep her as chancellor and stick to her economic policies.”
Reeves claimed she had brought “stability” to the economy since becoming chancellor and said she was “proud” of her record on inflation and growth. But 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. Acknowledging there was “more to do”, she said the budget later this year would include further reforms to business rates and fiscal devolution.
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. 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.”
Burnham could take over as soon as 17 July if no other contenders emerge, following Starmer’s resignation after a slew of senior cabinet resignations. For now, Reeves is banking on her policies – and her relationship with the man set to lead the party – being enough to keep her at the Treasury.