Rachel Reeves has issued a stark warning to incoming Prime Minister Andy Burnham, cautioning that he will face "shocks and challenges" that require a meticulously worked-through plan to navigate. In an interview on BBC's 'Sunday with Laura Kuenssberg', Ms Reeves acknowledged the steep learning curve awaiting Mr Burnham as he prepares to assume office next week.
The Chancellor's remarks come as Labour's MPs confirmed his appointment earlier this week, following 322 nominations. Speaking candidly about the difficulties of governing, Ms Reeves advised Mr Burnham to remain "laser-focused" on his core motivations as he transitions into Downing Street. This sentiment is echoed by Morgan McSweeney, former top aide to Sir Keir Starmer, who admitted that Labour was insufficiently prepared for government after its landslide general election victory in 2024.
Ms Reeves' comments also highlight a broader concern within the party about being adequately prepared for power. As she prepares to leave Number 11 Downing Street, she revealed that she had nominated Mr Burnham for leadership, acknowledging that Labour's public was "impatient for change". Louise Haigh, former transport secretary and Mr Burnham's campaign manager, disclosed that he had been strategising for the premiership for over a year, a move Ms Reeves described as "perfectly reasonable".
Mr Burnham has pledged to prioritise devolution, reindustrialisation, and public control of services. He also aims to boost British businesses and increase defence spending, designating the latter as his "first priority". These commitments signal a clear direction for his administration, aimed at bridging regional disparities and bolstering national capabilities.
Ms Reeves is set to deliver her final major official act as Chancellor with a Mansion House address on Tuesday. In this speech, she will outline measures to increase financial access for small businesses, including the expansion of the Growth Guarantee Scheme. This initiative currently offers a 70 per cent government guarantee on commercial loans up to £2 million and will be extended to approximately 12,000 additional SMEs. The expansion is projected to support an additional £2 billion in lending by the close of the 2028 financial year, aiming to unlock potential across the UK's regions.