Chancellor Rachel Reeves has publicly endorsed Andy Burnham to take over as the next prime minister, despite ongoing speculation regarding whether he might move her to a more junior cabinet role should he secure the Labour Party leadership. Speaking to the BBC, Reeves explicitly stated her support for Burnham to assume the top office.
Burnham, who was recently sworn in as the MP for Makerfield earlier this week, is widely anticipated to replace Reeves as chancellor if his leadership bid succeeds. Currently, he stands as the sole candidate to have declared an interest in the Labour leadership position. Reeves noted that any decision regarding her future in the cabinet rests with Burnham, though she remains prepared to offer targeted, temporary relief on energy costs later this autumn.
Regarding reports that she might be offered a demoted position under a Burnham administration, Reeves maintained her support for the new MP. She declined to speculate on potential appointments, reiterating that while she believes he would be an excellent prime minister, the authority to make those cabinet decisions remains entirely his.
Burnham is viewed by many within the party as the frontrunner to succeed Sir Keir Starmer, who confirmed his resignation this week following a series of departures among senior cabinet members. Should no other challengers emerge, Burnham could potentially become prime minister by 17 July.
Reeves stressed that the next leader must strictly adhere to her established fiscal rules, which include ensuring daily government spending is covered by tax revenue by the end of the Parliament and systematically reducing the debt-to-GDP ratio. Burnham has already signaled his intention to maintain the government’s existing borrowing and spending framework.
Highlighting the importance of financial stability, Reeves argued that the previous government’s loss of control over public finances led to surging inflation and interest rates, which directly impacted families. While she noted her success in creating greater budget flexibility by increasing financial headroom, she insisted that the party must demonstrate unwavering commitment to fiscal discipline to protect working people and businesses from higher taxes and inflation.
Although Reeves was not seen with the crowd outside 10 Downing Street when Sir Keir announced his departure on Monday, she was captured in a group photo with Burnham at Westminster shortly after his swearing-in. Addressing questions about her absence from the speech, she affirmed her long-standing loyalty to the outgoing leader, noting her service by his side for six years as shadow chancellor and later as chancellor of the exchequer.
Reflecting on her tenure, Reeves acknowledged areas for improvement but expressed pride in her accomplishments, citing increases to the national living wage and national minimum wage, as well as positive trends in economic growth and stabilizing inflation. She expressed confidence that the next leadership team would inherit a significantly stronger economy than the one she took over two years ago.
