Rachel Reeves Supports Andy Burnham as Next Prime Minister

Chancellor Rachel Reeves supports Andy Burnham as the next prime minister, emphasizing fiscal discipline and readiness to assist despite potential cabinet changes under his leadership.

Reeves Endorses Burnham for Prime Minister

Chancellor Rachel Reeves has expressed her support for Andy Burnham to become the next prime minister, despite reports suggesting he might assign her a junior cabinet role if he assumes leadership of the Labour Party.

"I'm supporting Andy to be prime minister," she told the BBC.

Burnham, who was sworn in as the member for Makerfield earlier this week, is anticipated to succeed Reeves as chancellor should he become prime minister. Currently, he is the sole candidate to have declared his intention to run for the Labour leadership.

Reeves acknowledged that whether she remains chancellor depends on Burnham's decisions, but affirmed her readiness to implement targeted, temporary relief on energy bills during the autumn.

"I'm not going to pre-empt the decisions that the new prime minister will make. I'm backing Andy. I think he'd be a great prime minister, but those are his decisions, not mine to make," she said.

Labour Leadership Context

Burnham is widely regarded within the Labour Party as the frontrunner to replace Sir Keir Starmer, who announced his resignation earlier this week following multiple senior cabinet resignations.

If Burnham remains unopposed, he could assume the prime ministership as early as 17 July.

Fiscal Policy and Economic Outlook

Reeves emphasized the necessity for the next leader to adhere to her fiscal rules, which include ensuring that day-to-day government spending is financed through tax revenue by the end of the Parliament and reducing debt relative to GDP.

Burnham has previously pledged to maintain the current government borrowing and spending regulations.

"The last government lost control of the public finances," Reeves said.

"It sent inflation through the roof and interest rates through the roof. So control of the public finances has a real impact on families today."

While Reeves noted that she had enhanced the government's budget flexibility by increasing financial headroom, she stressed the importance of the public being confident in the party's commitment to fiscal discipline.

"Because if you lose control of the public finances, it is ordinary working people and businesses who pay the price with higher inflation, higher taxes and indeed higher interest rates," she added.

Reeves' Role and Commitment

Reeves was not present outside 10 Downing Street on Monday when Sir Keir announced his resignation as prime minister, but she joined a group selfie with Burnham following his swearing-in at Westminster later that day.

"I don't think anyone can doubt my commitment to the prime minister. I've been by his side for six years now as shadow chancellor and then as chancellor of the exchequer," Reeves said.

When questioned about her absence from Sir Keir's speech, she declined to provide an explanation.

Reflection on Tenure as Chancellor

Reflecting on her tenure as chancellor, Reeves acknowledged areas for improvement but expressed pride in her record, which includes raising the national living wage and national minimum wage, as well as contributing to economic growth and stabilizing inflation.

"I know that whoever is prime minister and chancellor in the future will inherit a stronger economy than the one I inherited two years ago," she said.