Chancellor Rachel Reeves will be dismissed from her role if Andy Burnham successfully ousts Sir Keir Starmer as Labour leader, according to sources close to the Greater Manchester Mayor. Burnham, who won the Makerfield by-election on Friday, is set to arrive in Westminster on Monday amid mounting pressure on Starmer to resign or set a departure timetable.
Charm Offensive Fails to Sway Burnham Camp
Allies of Reeves have been mounting a charm offensive to secure her position, arguing that retaining her as Chancellor would reassure financial markets during any leadership transition. However, Burnham's inner circle has concluded that keeping Reeves would not represent a sufficient change in direction for the party's economic policy.
Several senior Labour figures have been floated as potential contenders for the top Treasury role, including Energy Secretary Ed Miliband, former Health Secretary Wes Streeting, Work and Pensions Secretary Pat McFadden, and former Defence Secretary John Healey.
Union Boss Warns Against Miliband
Sharon Graham, general secretary of Unite, Britain's largest trade union, publicly urged Burnham to rule out appointing Miliband as Chancellor. "It is no secret that I disagree with Ed on almost every issue relating to a workers' transition," Graham said. "Ed only seems to be interested in one side of the equation, rushing Britain to net zero with almost no thought for jobs, skills and national security."
Graham also called on Burnham to maintain Starmer's plans to water down electric car sales targets, reverse his opposition to a third runway at Heathrow, and back a return to North Sea oil drilling.
Growing Rebellion Against Starmer
Foreign Secretary Yvette Cooper has reportedly told the Prime Minister to stand down, according to the BBC, joining a growing number of cabinet ministers losing faith in his leadership. The rebellion comes as Labour faces internal divisions over economic and environmental policy.
Economist Jim O'Neill, a long-time informal advisor to Burnham, has urged him to scrap the pension triple lock if he becomes leader. "I'm trying to say to him: you have this ambition to be the leader, one of these years you've got to deal with the sacred cows," O'Neill said. "The reward would be a significantly low bond market premium and a big boost to financial conditions that would boost consumer and corporate confidence."
Burnham will be sworn in as MP for Makerfield on Monday, formally entering Parliament and positioning himself as a direct challenger to Starmer's leadership.
