Rachel Reeves has been dismissed as Chancellor of the Exchequer by newly appointed Prime Minister Andy Burnham. The sacking occurred on Monday afternoon, shortly after Burnham officially assumed power, marking a significant shakeup in the Labour government.
Reeves Reacts to Dismissal
In a statement on X, Reeves expressed support for her successor and Burnham, saying: "I wish the very best of luck to my successor, Andy and his cabinet. You have my full support, and I will continue to play my part in helping this Labour government deliver the change the country needs." She added that it had been "the privilege of my life to serve as the Chancellor of the Exchequer" and highlighted achievements including restored stability, delivered investment, and ongoing economic reform.
Reeves also addressed her historic role as the first female Chancellor, stating: "And to every young woman and girl let my time in office show there should be no ceilings on your ambitions, your hopes or your dreams." She asserted that the lives of ordinary working-class people had improved during her tenure.
Broader Cabinet Reshuffle
Reeves' firing followed the earlier dismissals of Deputy Prime Minister David Lammy, Housing Secretary Steve Reed, and Business Secretary Peter Kyle. According to the BBC, Reeves was offered a "big job" within Burnham's cabinet but declined. The former Manchester mayor's purge of key figures from Keir Starmer's administration signals a decisive shift in leadership.
Historical Context and Popularity
Reeves served as the 109th Chancellor since the position's creation and the first woman to hold the office. Despite navigating turbulent economic conditions, including tariffs imposed by Donald Trump, she struggled with public approval. By November, she had become the most unpopular chancellor in history, with approval ratings of minus 71.
Potential Successors
With the chancellorship vacant, speculation points to Home Secretary Shabana Mahmood as the frontrunner for No. 11 Downing Street. Other potential candidates include Ed Miliband and Yvette Cooper, who could be an outside pick for the Treasury.
