Rachel Reeves has issued a stark warning to the incoming prime minister, Andy Burnham: without a “worked-through plan”, governing Britain will be a brutal slog. In what is likely to be her last major interview as chancellor, Reeves told the BBC’s Laura Kuenssberg that “it is important that when Andy walks through that door he has a worked-through plan, because governing is hard in Britain, and lots of challenges and shocks will come his way.”
Reeves – speaking from the same lavish 17th-century state room in No 11 Downing Street where she gave her first full interview in July 2024 – said she would happily hand over what she called a stronger economy. “Andy will take over an economy that is much stronger than the one I inherited from the Conservatives just two years ago,” she insisted, pointing to lower borrowing costs, reduced inflation from its peak, higher infrastructure investment, and faster growth than the UK’s nearest competitors.
“Reeves warns Burnham needs a 'worked-through plan' as she claims to hand over a stable but strained economy.”
But the picture is far from rosy. Inflation remains above target and is expected to rise. Growth has been slow, and the Bank of England warned just this week that interest rates might have to go up again. The country’s debts are due to be higher at the end of this parliament than when Labour moved in, and firms and families’ spending power is still under pressure, with the latest ONS figures showing disposable income squeezed.
When asked why Sir Keir Starmer’s time in office was ending, Reeves acknowledged public impatience: “People are impatient for change – I’m impatient for change and I totally get that people want to see their lives changed faster.”
Reeves wouldn’t say who should be the next chancellor, or even if she would like to stay – though she has always called the job her “dream”. Her team clearly does not expect to remain in No 11, but with the incoming No 10 team tight-lipped about its cast list, nothing is certain. Burnham will take office in little more than a week, and Reeves’s message is blunt: be laser-focused, or be overwhelmed.