Rachel Reeves has launched a campaign to remain as chancellor even if Keir Starmer is replaced as Labour leader, with allies urging MPs to back her as the only candidate capable of safeguarding the UK’s finances. The lobbying push comes as Andy Burnham’s bid for the Makerfield byelection raises the prospect of a leadership change later this year.
Allies of Reeves warn that Burnham, who is reportedly considering appointing Ed Miliband as chancellor, would damage market confidence. “The biggest fear for the bond markets and the unions is Ed Miliband,” one Labour MP close to the chancellor said, adding that a double change at the top would be risky.
Reeves has had a strong week, with the IMF upgrading UK growth forecasts to 1%, inflation falling to 2.8%, and the government postponing a fuel duty rise. She also announced a surprise VAT cut on family attractions as part of a cost-of-living plan, which Treasury officials codenamed “Project Mint” to prevent leaks.
However, Reeves faces headwinds. Burnham may seek a clean break from the Starmer government, and borrowing figures came in higher than expected last month. She also confronted a Reform UK supporter who heckled her during an interview, calling for “good manners” in a testy exchange.
Despite the challenges, Reeves’ supporters insist her fiscal credibility is essential. “There is real value in consistency and predictability at the Treasury,” one ally said, as she continues to defend her record against internal and external critics.
