Burnham mulls Chancellor choice as Streeting and Miliband lead options to reassure markets
Under Labour’s timetable, nominations to replace Starmer will open on 9 July and close on 16 July, meaning Burnham could take office the following day if no rival secures enough backing
Andy Burnham is preparing to make his first big economic pitch as he readies a move into Downing Street, with attention already turning to who he could appoint as Chancellor.
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The former Greater Manchester mayor is expected to use a speech next week to promise growth and stick to Labour’s fiscal rules, amid reports he is weighing up Ed Miliband, Wes Streeting and Shabana Mahmood for the role.
Burnham is said to want to reassure the markets as he pushes for a swift path into No 10 following Sir Keir Starmer’s resignation.
Under Labour’s timetable, nominations to replace Starmer will open on July 9 and close on July 16, meaning Burnham could take office the following day if no rival secures enough backing.
Miliband had been seen as the frontrunner, but The Times says some cabinet colleagues have raised concerns about his pro-business credentials. His allies reject that criticism and say he has the experience and vision needed to reshape the economy.
The paper reports that Burnham’s allies are aware of the scale of the task ahead, while Darren Jones, the Chief Secretary to the Prime Minister, is considering whether to stand in the leadership contest even if he is not expected to win.
Yesterday, Chancellor Rachel Reeves was pictured looking downcast as Andy Burnham was sworn into parliament.
Read More: Andy Burnham has a lot of questions to answer, writes Bethany Dawson
Read More: Burnham 'could be in Downing Street within weeks' after Starmer resigned as PM
Streeting emerged as a leading contender after publicly backing Burnham less than two hours after Starmer’s resignation speech.
He said Burnham could deliver “the change our country needs” and that he did not want to spend the summer “exaggerating our small differences” in a contest.
Mahmood is said to want to remain as Home Secretary, although the paper reports that Burnham still sees her as a serious option for Chancellor.
In another effort to steady confidence, Burnham is expected to give roles to Lord O’Neill of Gatley, the former Goldman Sachs banker and Treasury minister, and Andy Haldane, the former Bank of England chief economist.
The Times also reports that the Defence Investment Plan, which triggered a row inside government and led to John Healey’s resignation as Defence Secretary, is likely to be delayed until Burnham takes office.
A planned Brexit summit aimed at improving UK-EU relations has also reportedly been pushed back.
Starmer announced his resignation outside Downing Street, saying his successor would “inherit a Britain that is far stronger and fairer than the one I inherited two years ago”.
But he acknowledged that he no longer had the confidence of Labour MPs.
“The question my party is asking now is whether I am best placed to lead us into the next general election,” he said.
“I have heard the answer of my parliamentary party to that question. I accept the answer with good grace.”
In an emotional close to the speech, he added: “When I leave the biggest job in the country, I shall spend more time on the most important job: being the best husband I can to my fantastic wife, Vic, who has been a rock by my side through good times and bad, and being the best dad I can to my beautiful children, who are my pride and my joy.”
Burnham paid tribute to Starmer, saying he had “given huge service to our country” and praising his “leadership and dedication during such a challenging period”.
He added: “His decision marks the beginning of a transition and it is important that this process is conducted in an orderly and responsible way. The country expects stability, seriousness and a continued focus on the issues that matter most and that is what it will get.”
While most Labour MPs expect Burnham to become Prime Minister without a contest, The Times says Jones has been sounding out colleagues to see whether he could secure the 81 nominations needed to run.
A source close to Jones told the paper he was “not minded to run, but will want assurances on economic and national security policy before signing up to a coronation”.
Starmer’s resignation also prompted calls from Nigel Farage for an early general election.
He said: “If Labour thinks it can shove another professional politician into No 10, it has another thing coming.”
Kemi Badenoch criticised Starmer for not making a Commons statement after last week’s G7 summit. ]
“He says he needs to stay in post for three months, but then doesn’t come to parliament to do his job,” she said.
She added: “He wants to go on a farewell tour while the new member for Makerfield [Burnham] is asking for a summer holiday to work out what he thinks. In the meantime, no one is in charge and Britain is not being governed.”
Speaking in the Oval Office, Donald Trump described Starmer as “a lovely man” and “sort of a friend”, but criticised his approach to energy and immigration, and said his initial refusal to let US forces use British bases in the Iran conflict “hurt him badly”.