Reeves Affirms Support for Burnham's Leadership Bid
Chancellor Rachel Reeves has voiced her support for Andy Burnham to become the next prime minister. This endorsement comes despite reports indicating that Burnham might reassign her to a more junior cabinet position if he assumes leadership of the Labour Party.
Speaking to the BBC, Reeves stated, "I'm supporting Andy to be prime minister." Burnham, who recently became the Member of Parliament for Makerfield, is widely anticipated to replace Reeves as Chancellor if he secures the prime ministerial role. He is currently the sole declared candidate for the Labour leadership.
Cabinet Role and Fiscal Priorities
When questioned about her potential future role, Reeves acknowledged that any cabinet decisions would ultimately rest with Burnham. However, she affirmed her readiness to implement targeted, temporary relief measures for energy bills in the autumn. Regarding speculation about a less senior cabinet role, Reeves reiterated her backing for Burnham, stating, "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."
Many within the Labour Party consider Burnham the leading contender to succeed Sir Keir Starmer, who announced his resignation earlier this week following a series of senior cabinet departures. If Burnham runs unopposed, he could potentially become prime minister as early as July 17.
Reeves also underscored the importance of the next leader adhering to her established fiscal rules. These guidelines include ensuring that day-to-day government spending is financed by tax revenue by the end of the parliamentary term and reducing the national debt as a proportion of GDP. Burnham has previously committed to maintaining the current government's borrowing and spending regulations.
"The last government lost control of the public finances," Reeves remarked. "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 improvements in the government's budgetary flexibility due to increased financial headroom, she stressed the necessity of assuring the public of the party's dedication to fiscal discipline. She warned that a loss of control over public finances would result in higher inflation, increased taxes, and elevated interest rates for ordinary working people and businesses.
Commitment and Reflection
Notably, Reeves was absent from the gathering outside 10 Downing Street on Monday when Sir Keir announced his resignation. However, she was present for a group photograph with Burnham following his swearing-in at Westminster later that day. Reeves maintained that her commitment to Sir Keir could not be doubted, stating, "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." She declined to elaborate on her absence from his speech.
Reflecting on her tenure as Chancellor, Reeves acknowledged areas for improvement but expressed significant pride in her accomplishments. These included increasing the national living wage and national minimum wage, overseeing economic growth, and stabilizing inflation. She concluded, "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."