Andy Burnham is reportedly considering retaining Rachel Reeves as Chancellor if he becomes prime minister, following lobbying from Labour MPs who view her as essential for economic stability, The i Paper has learned. The Greater Manchester Mayor has been told that keeping her in post is necessary to avoid spooking financial markets, drawing comparisons to Liz Truss appointing Jeremy Hunt after her mini-Budget crisis.
Some allies believe Burnham has already decided to keep Reeves, despite her unpopularity over tax rises, the winter fuel allowance cut, and weak economic growth. One minister backing Burnham said interest rates have been held due to Reeves’ stewardship, and that keeping her would prevent unnecessary instability. Another MP described it as a “done deal.”
However, other Labour figures argue it would be “utterly ridiculous” to retain Reeves, given her association with Sir Keir Starmer’s leadership and policies. A backbencher said every big decision has been her fault, and she must go. A Cabinet source noted it would be “absolutely extraordinary” if Reeves were the only minister to survive a leadership change.
Burnham has hinted at policy shifts, including increasing the income tax personal allowance and cutting business rates for pubs and independent shops. He is also considering a land value tax to replace council tax, while some backers want to reverse VAT on private school fees. These moves could put him at odds with Reeves’ existing economic programme.
