Rachel Reeves's high-stakes endorsement of Andy Burnham for Prime Minister has sent shockwaves through Labour circles, with the Chancellor urging a future government led by him to maintain her economic strategy. Speaking at the British Chambers of Commerce conference, Ms Reeves defended her handling of the UK economy, insisting that her policies are "beginning to bear fruit" and have brought "stability" since she took office.
The endorsement comes as reports emerge that Mr Burnham might consider demoting Ms Reeves to a more junior cabinet position if he assumes leadership of the Labour Party. However, despite these reports, Ms Reeves affirmed her close working relationship with Mr Burnham on "fiscal devolution", a policy aimed at transferring more financial powers to English regions – a move he strongly supports.
Ms Reeves also addressed concerns about the party's fiscal rules, which aim to ensure that day-to-day spending is funded through tax revenue by the end of the parliamentary term. She highlighted Mr Burnham's backing for these rules, stating "Andy has been really explicit – he backs those fiscal rules." Furthermore, she expressed hope that whoever succeeds her as Chancellor will "stick to what I'm doing because it is beginning to bear fruit."
Mr Burnham remains the sole declared contender to replace Sir Keir Starmer, who announced his resignation earlier this week following a series of senior cabinet departures. If no other candidates emerge, Mr Burnham could be confirmed as Prime Minister as early as 17th July. Potential replacements for Ms Reeves as Chancellor include Ed Miliband, Wes Streeting, or Shabana Mahmood – though Ms Reeves stated she would not pre-empt Mr Burnham's choices.
When questioned about the need for change at the top, Ms Reeves commented "Clearly we need to do more to connect with the country and tell a better story of what we've done in government. That is what Andy will be able to provide as our next prime minister – he has a great track record of delivering in Greater Manchester." Notably, Ms Reeves was absent from Sir Keir Starmer's resignation speech outside 10 Downing Street but later accompanied Mr Burnham at Westminster following his swearing-in.
Ms Reeves underscored the importance of fiscal discipline, warning that if public finances are not controlled, "ordinary working people and businesses" will bear the cost through increased inflation, taxes, and interest rates. She reiterated her commitment to maintaining stability in the economy and urged a future government to build on the progress made under her leadership.