London, United Kingdom. British Chancellor Rachel Reeves said on Thursday that she supports Andy Burnham to become the next prime minister, saying he would maintain her fiscal rules and provide policy stability. She also dismissed reports that she could be moved to a more junior government role.
Reeves backs Burnham
Reeves told the BBC she was backing Burnham after he emerged as the only declared candidate to replace Keir Starmer, who announced his resignation on Monday.
She later said Burnham “will be the next prime minister” and added that he had made clear his commitment to her fiscal rules, including balancing day-to-day spending with tax revenues and reducing debt as a share of output.
Speaking at a British Chambers of Commerce conference, Reeves said this would allow businesses to remain confident that stability, rigour in policymaking and a tight grip on the public finances would continue.
Starmer transition and Burnham candidacy
Starmer said he would oversee an orderly transition to a new prime minister from the Labour Party after facing pressure over weak poll ratings and poor local election results.
Burnham is the only candidate to have put his name forward to replace Starmer and is widely expected to be installed without a challenge, which could make him prime minister by mid-July. If appointed, he would become Britain’s seventh leader in a decade.
Questions over Reeves’ role
Asked whether she wanted to remain as finance minister, Reeves said she would not pre-empt cabinet decisions and that the matter would be for Burnham to decide. Media reports have suggested she could be moved to a more junior post.
Defence spending and fiscal rules
Reeves stressed the need to adhere to the fiscal rules and indicated that borrowing could be used to fund increases in defence spending under a long-awaited defence investment plan, which she said would be delivered before a NATO summit beginning on July 7.
Earlier this month, John Healey resigned as defence secretary, saying proposed increases in defence spending did not match the threats facing Britain. Starmer defended the plans, saying higher spending would be sustainable and fair and would not rely on “irresponsible borrowing.”
Reeves said the defence investment plan would involve “more money spent more effectively” and that borrowing to invest was “exactly what my fiscal rules allow… because most defence spending is capital investment.”
