Chancellor Rachel Rees has thrown her support behind Andy Burnham to be the next prime minister, urging him to stick with her economic policies as they 'begin to bear fruit'—despite reports he could demote her if he takes the top job.
Speaking at the British Chambers of Commerce (BCC) conference, Reeves defended her record on inflation and growth, saying she had brought 'stability' to the economy. 'Yes, there is more to do,' she told Sky News journalist Sophy Ridge, promising further reforms to business rates and fiscal devolution in the upcoming budget.
“Rachel Rees urges Andy Burnham to stick with her economic policies as he eyes becoming PM, despite reports he could demote her.”
Burnham, the former Greater Manchester mayor, is the only contender so far to replace Sir Keir Starmer, who announced he was standing down on Monday after losing the support of Labour MPs. He could take over as soon as 17 July if no other candidates emerge.
Although some on the left of the party have called for Reeves’ fiscal rules—designed to ensure day-to-day spending is funded by tax revenue, only borrowing for capital investment and reducing debt as a proportion of GDP—to be relaxed, the chancellor was adamant Burnham backed them. 'Andy has been really explicit - he backs those fiscal rules,' she said.
But reports suggest Burnham is considering Ed Miliband, Wes Streeting or Shabana Mahmood as possible replacements for Reeves. When asked, she refused to pre-empt his choice of chancellor, instead highlighting their close working relationship on 'fiscal devolution'—transferring more powers to English regions, a policy Burnham is committed to.
'I hope that whoever is chancellor, in the future... sticks to what I'm doing because it is beginning to bear fruit,' Reeves said. She added: '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.'
With no other challenger yet in the race, Burnham’s path to Downing Street appears clear—but Reeves’ future in his cabinet remains uncertain.