Chancellor Rachel Reeves has publicly endorsed Andy Burnham, the Member of Parliament for Makerfield, as her preferred candidate to become the next prime minister. This endorsement comes despite speculation that Burnham might demote Reeves if he assumes leadership.
Reeves underscored the critical importance of the next leader maintaining her established fiscal rules. These rules mandate that day-to-day spending must be covered by tax revenue by the end of the parliamentary term and require a reduction in debt as a proportion of the Gross Domestic Product (GDP). Burnham has previously stated his commitment to upholding the government's current borrowing and spending regulations.
"The last government lost control of the public finances," Reeves stated, drawing a contrast with the current administration. "It sent inflation through the roof and interest rates through the roof. So control of the public finances has a real impact on families today."
While Reeves noted she has enhanced the flexibility of the government's budget by increasing its financial headroom, she stressed that the public must remain assured of the party's dedication to fiscal discipline. "Because if you lose control of the public finances, it is ordinary working people and businesses who pay the price with higher inflation, higher taxes and indeed higher interest rates," she added.
Reeves was notably absent from the gathering outside 10 Downing Street when Sir Keir announced his resignation as prime minister. However, she was present for a group photograph with Burnham later that day following his swearing-in at Westminster.
Addressing her absence from Sir Keir's resignation announcement, Reeves stated, "I don't think anyone can doubt my commitment to the prime minister. I've been by his side for six years now as shadow chancellor and then as chancellor of the exchequer." When pressed further on the reasons for her absence, she declined to comment.
Reflecting on her tenure as chancellor, Reeves acknowledged that there were aspects she could have improved. Nevertheless, she expressed pride in her record, which she said included increases to the national living wage and national minimum wage, alongside economic growth and inflation stabilization. "I know that whoever is prime minister and chancellor in the future will inherit a stronger economy than the one I inherited two years ago," she said.