- Rachel Reeves backs Andy Burnham to become the next prime minister.
- Burnham may demote Reeves to a junior cabinet role upon leadership.
- Fiscal discipline remains a priority to prevent high inflation and taxes.
The Chancellor, Rachel Reeves, has declared her support for Andy Burnham to lead the government. This comes while chatter persists that Burnham could shift her to a junior cabinet post if he takes the helm. She told the BBC «I’m supporting Andy to be prime minister».
Burnham is the sole candidate for the Labour leadership so far. He was sworn in as the Makerfield member recently. It is expected he would replace Reeves as chancellor, but she remains ready to provide temporary energy bill relief in autumn. He is the frontrunner to replace Sir Keir Starmer.
Andy Burnham is the frontrunner for party leadership
The transition might happen by 17 July if no one opposes him. Reeves refuses to get ahead of the new leader’s picks. She stated «I’m not going to pre-empt the decisions that the new prime minister will make. I’m backing Andy» though the specifics remain his call.
Regarding fiscal rules Reeves stressed that day-to-day spending must be funded through tax revenue. She pointed out that losing control of finances hits working people through interest rates. Burnham has previously said he would stick to the current borrowing and spending rules of the government.
Reeves was missing from the Downing Street crowd when Sir Keir announced his exit. However, she was spotted in a selfie with Burnham. She claims her commitment to the outgoing PM is clear, having served as shadow chancellor and then chancellor for six years.
The Chancellor expressed pride in increasing the national living wage and minimum wage. She believes the next team will inherit a stronger economy than what she took over two years ago. She admitted some things could have been handled better, yet inflation has flattened out.
