Chancellor Rachel Reeves has warned Andy Burnham that governing is hard and that he must be ready for 'shocks' when he takes office. Speaking on the BBC's Sunday with Laura Kuenssberg, Reeves said Burnham and his team must be clear about what they want to achieve and stay laser-focused as obstacles arise. Burnham, the MP for Makerfield, will be confirmed as Prime Minister on Friday and take office next Monday.
Reeves Advises Burnham on Governance Challenges
Reeves, who defended her record since coming to power, stated: 'Andy has never shied away from the fact that he wanted at some point to lead the Labour Party. And I want him to be ready for that, because I want him to be a success, and I am sure he will be.' She added: 'But it is important that when Andy walks through that door that he has a worked-through plan, because governing is hard in Britain, lots of challenges and shocks will come his way. And what is really important is that he and his team are really clear about what they want to achieve.'
Reeves emphasised that Burnham must stay focused on his motivations: 'As those shocks come along, he needs to stay laser focused on those things that have always motivated him, have always driven him and are the reason why he wants to lead our great country.'
Burnham's Chancellor Pick and Economic Policy
Burnham has yet to name his pick for Chancellor, with Ed Miliband and Wes Streeting rumoured as frontrunners. Reeves refused to be drawn on whether she will remain in post, but said: 'I know that when he walks through that door that he is not going to have the same problems that we inherited two years ago because we have returned stability and trust to economic policy in the UK.' She highlighted achievements such as lifting children out of poverty and investing in projects nationwide.
In what is likely her last major interview as Chancellor, Reeves acknowledged public impatience: 'People are impatient for change. I'm impatient for change. And I totally get that. People want to see their lives changed, faster. And that will be the job for Andy Burnham when he becomes Prime Minister of our country in just over a week's time.'
Winter Fuel Allowance Controversy
Reeves twice refused to say whether her decision to withdraw the winter fuel allowance for millions of pensioners—later scrapped—was a mistake. She said: 'I've had to make hundreds and hundreds of choices as Chancellor over the last couple of years, and they haven't always been easy choices. I've always tried to do the right thing.' She noted that pensioners have received two increases in the state pension, significantly higher than price increases. Pressed again, she stated: 'I'm not going to go through all the different policies that we've announced, but I do know that pensioners are better off after two years of this Labour government.'
Reeves added: 'I am absolutely certain if we could go back two years, there are choices that I made that would be different. But look at the big picture, look at the plan, look at the strategy that I have been pursuing, and that strategy was to return stability to the economy, to enable interest rates to come down. We are growing for the first time and seeing productivity growth in our economy at rates we haven't seen for a long while.'
Burnham's Tax and Reform Pledges
Burnham has indicated possible movement on tax, stating he would not tear up Labour's manifesto pledges not to hike National Insurance, VAT, and income tax. However, he said there is scope to look at business rates without breaking promises, potentially charging companies more for giant warehouses and giving breaks to smaller firms.
Labour MP Miatta Fahnbulleh, a key advisor to Burnham, said: 'Everyone recognises that people are under pressure, living standards have not risen, and we have to grip that. And that means dealing with the cost of living in the short term to give people some respite, but also fundamentally reform to the essentials that people need to live well. Housing, energy, water, transport are all far too expensive and we've got to reform them to make them more affordable through public control.'
Fahnbulleh said changes would put more money in the pockets of the poorest Britons, but added: 'I'm not going to get into the specifics because ultimately that will be a choice for Andy and his Chancellor. But we are very, very clear. We understand that people are under pressure, and we do need to find ways to give people respite, and that is about money in their pockets.'
