Rachel Reeves Backs Andy Burnham as Next Prime Minister After Starmer Resigns

Chancellor Rachel Reeves urged an Andy Burnham-led government to maintain her economic policies during a speech at the British Chambers of Commerce conference on 25 June 2026. She said the measures were beginning to bear fruit and backed Burnham to succeed Keir Starmer as prime minister.

Reeves told the conference she had brought stability to the economy and was proud of progress on inflation and growth.

She added that the budget later in 2026 would include further reforms to business rates and fiscal devolution. Reeves said she had worked with Burnham on fiscal devolution while he was mayor of Greater Manchester and noted that he backs her fiscal rules. Starmer announced on 22 June that he was standing down after losing the support of Labour MPs.

Burnham could become prime minister as soon as 17 July if no other candidates emerge. Reports indicate Burnham is considering Ed Miliband, Wes Streeting or Shabana Mahmood as possible replacements for Reeves. Reeves was absent from the crowd outside 10 Downing Street when Starmer announced his resignation but later joined a group selfie with Burnham.

She said no one could doubt her commitment to Starmer after working with him for six years as shadow chancellor and then chancellor. Reeves said she was really proud of increasing the national living wage and national minimum wage. She added that the next prime minister and chancellor would inherit a stronger economy than the one she took over two years earlier.

Conservative shadow chancellor Mel Stride told the same conference that a potential Burnham government should rule out additional tax rises on businesses. Liberal Democrat leader Ed Davey called for closer ties to Europe, including rejoining the single market and customs union.