BBC Breakfast's chief political correspondent Henry Zeffman has revealed that Chancellor Rachel Reeves could be demoted to a more junior Cabinet position if Andy Burnham becomes the next Labour leader and prime minister. The news broke during a live segment on the morning show, following Keir Starmer's resignation as prime minister.
Burnham's Cabinet Plans
Zeffman reported that sources close to Burnham have confirmed that Reeves would not remain as Chancellor under his leadership. He stated: "There's a lot of transition work with those around Andy Burnham, and we have essentially confirmation from sources close to Andy Burnham that Rachel Reeves would not remain in post as his Chancellor. That's not necessarily a massive surprise, but it is interesting that this is now being talked about so clearly."
The journalist added that there is a suggestion from some close to Burnham that Reeves would be offered a more junior position in Cabinet. He noted: "It's pretty rare for a former Chancellor to move to a more junior Cabinet position." However, a spokesperson for Burnham told the BBC that no decisions have been made.
Chief of Staff Appointment
One decision that has been made is the appointment of James Purnell as Burnham's Chief of Staff, who would run Downing Street and the government. Purnell, like Burnham, was a Cabinet minister in the last years of the New Labour government and later worked as an executive at the BBC. He also held a ministerial role in Gordon Brown's government between 2007 and 2009.
Leadership Contest Timeline
Starmer resigned as prime minister days after Burnham won the Makerfield by-election, paving the way for his return to Parliament. Burnham is currently the sole candidate for the Labour leadership. If he faces no opponent, he could become prime minister as early as 17 July. Former Royal Marines officer Al Carns told BBC Newsnight he was still considering entering the contest but was waiting for Burnham's policy plans to "push forward."
The Labour Party's rulebook requires candidates to be nominated by 81 Labour MPs, as well as either 32 of Labour's 634 local branches or three affiliated organisations, including two trade unions.
Starmer's Resignation Speech
In his resignation speech, Starmer said: "I will ask the National Executive Committee of the Labour Party to set out a timetable with nominations opening on the 9th of July and completed by the summer recess. In the case of a contest, this will ensure a new leader is in place before Parliament returns in September." He added: "I will remain in post as prime minister until the contest is complete. And I will do everything I can to ensure an orderly handover of power."
Starmer also pledged: "I will also give my successor my full and unequivocal support, knowing that they will inherit a Britain that is far stronger and fairer than the one I inherited two years ago, better prepared for the challenges ahead, and better able to ensure the Labour Party secures a second term in office."
