Chancellor Rachel Reeves has publicly endorsed Andy Burnham to be the next prime minister, despite reports that she may be moved to a less prominent cabinet position if he wins the Labour leadership. In an interview with the BBC, Reeves stated, “I’m supporting Andy to be prime minister,” and declined to rule out accepting a junior role, saying she would not pre-empt the new prime minister’s decisions.
Speaking at the British Chambers of Commerce conference on Thursday, Reeves expressed confidence that Burnham would retain her fiscal rules, which she described as “a good thing.” She defended her record as chancellor, noting that fiscal devolution and business rates were areas where she wanted to go further. “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.
Reeves also addressed defence spending, confirming that her fiscal rules already allow for more borrowing for defence investment. She stated that the upcoming defence investment plan would involve “more money, spent more effectively,” and emphasised the importance of cooperation with Nato allies, particularly European partners, to achieve better value for money.
The chancellor’s support for Burnham comes amid a reported lobbying effort by her aides to persuade businesses and trade associations to advocate for her retention as chancellor. According to Sky News, officials including business adviser Katie Martin have contacted companies in sectors such as insurance, banking, and defence to argue for “stability” and “continuity.”
Speculation over Burnham’s choice for chancellor has intensified, with Labour MPs divided between supporters of former health secretary Wes Streeting and energy secretary Ed Miliband. Streeting is seen as more reassuring to business, while Miliband is viewed as more likely to back radical reforms. Some Labour figures have cautioned against a public briefing war over the appointment.
