RACHEL REEVES has told allies she wants to remain chancellor even if Keir Starmer is replaced as prime minister, amid reports Andy Burnham could appoint Ed Miliband to the role if he reaches No 10.
Supporters of Reeves have been lobbying Labour MPs to back her, arguing she is the only candidate who can maintain confidence in the financial markets and protect the country’s finances, The Guardian reported.
One Labour MP close to Reeves told The Guardian: “I am concerned that we may lose everything if a new leader sacrifices the chancellor for promises and new alliances they are currently forging with MPs who fancy the job for themselves. The biggest fear for the bond markets and the unions is Ed Miliband.”
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Another MP said: “Rachel has been very candid with us about the need to carry on. A double change is not the right thing to do.”
The developments come as Burnham campaigns in the Makerfield byelection after pledging to challenge Starmer’s leadership.
During the week, the International Monetary Fund raised its UK growth forecast to 1% for this year from 0.8%, while inflation fell to 2.8%, faster than expected. Reeves also announced a temporary VAT cut on family attractions as part of the government’s “Great British Summer Savings” plan.
However, Reeves continues to face criticism within Labour over policies including cuts to winter fuel payments and proposed disability benefit reductions. Some MPs have also rejected claims that only Reeves can reassure bond markets.
Labour MPs believe Burnham could consider either Reeves or Miliband for chancellor if he succeeds Starmer, though the two are seen as having different approaches to spending and green investment.
