Rachel Reeves has warned Andy Burnham that he will need a “worked-through plan” from the moment he walks into Downing Street, with the chancellor telling the incoming prime minister that “lots of challenges and shocks will come his way”.
In what is likely to be her last major interview as chancellor, Reeves told BBC One’s Sunday with Laura Kuenssberg that Burnham must stay “laser-focused on those things that have always motivated him”. Her warning came as Burnham, backed by 322 of Labour’s 403 MPs, is on course to become prime minister on 20 July after being elected Labour leader three days earlier.
“Reeves tells Burnham he needs a worked-through plan as shocks await in No 10.”
Reeves insisted she would hand over a stronger economy than the one she inherited from the Conservatives, pointing to lower borrowing costs, falling inflation and faster growth. “Andy will take over an economy that is much stronger than the one I inherited from the Tories just two years ago,” she said. But she acknowledged that people are “impatient for change” — something that contributed to Sir Keir Starmer’s exit — and that she would have made different choices if she could go back.
The chancellor’s message to Burnham is blunt: “Governing is hard in Britain.” He has already begun sketching his vision, including the “biggest rebalancing of power Britain has ever seen” and a new No 10 North hub, and has hinted at early cost-of-living support. But the economic picture remains mixed: inflation is still above target and expected to rise, growth has been slow, the Bank of England has warned that interest rates might have to go up again, and the country’s debts are due to be higher by the end of this parliament.
Reeves declined to say whether she would like to stay on as chancellor, calling it her “dream job” but noting that the incoming team has kept its cast list quiet. On Tuesday, she is expected to make a last-minute pitch for a senior role under Burnham, telling an audience at Mansion House that she has left the economy in a good state. Whether Burnham will keep her in No 11 — or stick with his own team — remains one of the most pressing questions of the transition.