Rachel Reeves is facing humiliation as Andy Burnham is reportedly set to remove her from the role of Chancellor if he becomes Prime Minister, according to sources close to the likely next Labour leader. Burnham, who returned to Parliament after winning the Makerfield by-election, is expected to offer Reeves an alternative Cabinet position rather than retaining her at 11 Downing Street.
Potential replacements for Reeves
Energy Secretary Ed Miliband, former health secretary Wes Streeting, Foreign Secretary Yvette Cooper and Home Secretary Shabana Mahmood have all been tipped as potential candidates to replace Reeves as Chancellor. An ally of Reeves told the Financial Times: “Rachel would like to be Chancellor, but ultimately she wants to serve in a Labour Government.”
Burnham's path to No 10
Burnham could enter Downing Street within weeks if no other candidate runs in the Labour leadership race. Sir Keir Starmer met his likely successor on Tuesday for face-to-face talks. Burnham will also start receiving Government briefings to prepare for power after Starmer authorised Civil Service access talks to begin for “prospective candidates” for the Labour leadership.
The Prime Minister told his Cabinet he wanted an “orderly transition” and insisted he would try to make the process “as easy as possible” for his successor.
Policy platform and fiscal rules
Burnham will begin to set out his policy platform by pledging economic growth and committing himself to Labour’s existing fiscal rules in a speech next week. Downing Street said no “major” new policy decisions or spending pledges would be made in the coming weeks. However, the delayed defence investment plan, which sparked John Healey's bombshell resignation as defence secretary, is still outstanding.
