A senior aide to Rachel Reeves has reportedly contacted some of Britain's largest companies and trade associations, urging them to lobby Andy Burnham to keep her as Chancellor. The move comes amid widespread speculation that Reeves will be demoted once Sir Keir Starmer leaves office.
Treasury Officials Reach Out to Business Leaders
Treasury officials made calls earlier this week to major firms in the insurance, banking, defence, and other sectors, according to sources. The message emphasized the need for "stability" and "continuity" at the Treasury during the leadership transition. Some of these calls reportedly took place before Sir Keir's resignation statement on Monday.
A number of the UK's biggest business groups are also understood to have been contacted, with the aim of persuading Burnham and his team to retain Reeves.
Business Leaders Urged to Advocate for Reeves
A source told Sky News: "The message was clear: keep Rachel as Chancellor, because stability, consistency and continuity are vital at a time like this." The Treasury declined to comment, but a source close to Reeves noted that her team "always talk to business and it is no secret that stability is at the heart of her agenda."
Reports in the Financial Times and other outlets on Wednesday indicated that Burnham intends to demote Reeves to a more junior cabinet post if he succeeds Starmer as prime minister. Energy Secretary Ed Miliband is among those being touted as a potential replacement.
Business Opposition to Miliband
Business leaders and some trade unions have begun lobbying against Miliband's appointment, citing his strong commitment to the net zero agenda and concerns that his economic policies would hinder UK growth. The lobbying effort underscores the high stakes for the business community in the upcoming leadership change.
