Andy Burnham is set to unveil his plans for the UK's economy after Sir Keir Starmer's resignation paved the way for him to become the next prime minister. The former Greater Manchester mayor is expected to give a speech on fiscal policy next week, following his return to Westminster as an MP after winning the Makerfield by-election.
Cabinet Reshuffle Speculation
Talks are taking place about a prospective new-look Cabinet, with Energy Secretary Ed Miliband and Home Secretary Shabana Mahmood both tipped as potential candidates to replace Rachel Reeves as chancellor. However, Burnham's allies said no jobs had been given and no deals made as of Monday evening. The next chancellor would also be bound by existing fiscal rules, which aim to restrict borrowing and pay for day-to-day spending out of tax revenues by the end of the decade.
Leadership Contest Dynamics
The prospect of a coronation for the former mayor looked increasingly likely on Monday as his main rival, former health secretary Wes Streeting, backed him to succeed Sir Keir. However, two senior Labour MPs are considering whether to launch leadership bids, which could complicate Burnham's plans. Reports suggest that Starmer loyalists were urging Chief Secretary to the Prime Minister Darren Jones to stand. Sources close to him said he was not currently minded to run but would want assurances on economic policy, amid concerns about potential unease in the markets. Former armed forces minister Al Carns said he had not ruled out standing, telling ITV's Peston programme: “I’m not ready to make a decision on this.”
Timeline for Leadership
If Burnham is the only candidate to receive the support needed to stand in the contest, he could become prime minister in mid-July. In an emotional statement outside No 10 on Monday, Sir Keir acknowledged he had lost the support of his MPs and promised an “orderly handover of power” to his successor. Defending his record, he pledged to give the next leader “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.” Sir Keir said he would ask Labour's ruling National Executive Committee (NEC) to set out a timetable that would see a new leader in place by the time Parliament returns from its summer recess on September 1. But the anointing of a new leader could come much sooner, with nominations closing on July 16. Potential candidates have until then to amass the support of at least 81 Labour MPs.
Starmer's Farewell
On Monday evening, Sir Keir and his wife Victoria hosted No 10 staff for drinks in the No 10 garden, where they thanked those present for their support. Lady Starmer told them: “I just wanted to say thank you from me. I obviously love Keir and support him as much as I can, but there’s only so much I could do, and it’s you guys who gave that support day in, day out, and I am personally really grateful for that. So, thank you all.”
Burnham's Response
Burnham praised Sir Keir's “huge service to our country” but said his resignation “marks the beginning of a transition.” He said: “The Labour movement has always been at its strongest when it looks forward with confidence and purpose. This is what we will do from here and we will make sure this transition is a positive process of renewal for our party and our country.”
