Reeves backs Burnham to become next prime minister

Here is the latest breaking news from around the world: Reeves backs Burnham to become next prime minister Figure caption, 'I don't think anyone can doubt my commitment to the prime minister' - Rachel ReevesByRachel Clun and Peter Ruddick, Business reporrtersPublished14 minutes agoChancellor Rachel Reeves has backed Andy Burnham to be the next prime minister, despite reports he could demote her to a junior cabinet position if he becomes the Labour Party leader. "I'm supporting Andy to be prime minister," she told the . Burnham, who was sworn in as the member for Makerfield earlier this week, is expected to replace Reeves as chancellor if he becomes prime minister.

So far, he is the only candidate to have put their hand up for the Labour leadership. Reeves acknowledged it was up to Burnham whether she stayed on as chancellor, but said she stood ready to provide targeted, temporary relief on energy bills in the autumn. Asked about reports that Burnham would offer her a more junior role in his cabinet, Reeves reiterated her support for the newest member of Parliament.

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"I'm not going to pre-empt the decisions that the new prime minister will make. I think he'd be a great prime minister, but those are his decisions, not mine to make," she said. Burnham is seen by many in the Labour Party as the frontrunner to replace Sir Keir Starmer, who announced his resignation earlier this week following a slew of senior cabinet resignations.

If he stands unopposed, Burnham could become prime minister as soon as 17 July. Who could be the UK's next chancellor? Published1 day agoThe economic challenges facing the next prime minister Published1 day agoBurnham on course to be PM, but what would his No 10 operation look like?

Published18 hours agoReeves emphasised the importance of the next leader sticking to her fiscal rules, which include ensuring day-to-day spending is funded through tax revenue by the end of the Parliament and reducing debt as a proportion of GDP. Burnham has previously committed to keeping the current government borrowing and spending rules in place. "The last government lost control of the public finances," Reeves said.

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"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 said she had improved the flexibility in the government's budget by increasing its financial headroom, she added the public must be left in no doubt about the party's commitment 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. The chancellor was absent from the crowd outside 10 Downing Street on Monday as Sir Keir announced he would be stepping down as prime minister, but was present for a group selfie with Burnham following his swearing-in at Westminster later the same day.

The story has become one of the most prominent items on the global agenda.