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UK's Reeves backs Burnham for prime minister, defers on own role

Published by Global Banking & Finance Review

Posted on June 25, 2026

2 min read

· Last updated: June 25, 2026

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Rachel Reeves Endorses Andy Burnham to Succeed Starmer as UK Prime Minister

Rachel Reeves Backs Andy Burnham Amid Labour Leadership Transition

Reeves Publicly Supports Burnham

LONDON, June 25 (Reuters) - British finance minister Rachel Reeves said on Thursday she was backing Andy Burnham to be the next prime minister, brushing off reports she could lose her role and be moved to a more junior post if he took over the Labour Party.

"I'm supporting Andy to be prime minister," she told the BBC, after Burnham emerged as the only declared candidate to replace Keir Starmer, who announced his resignation on Monday.

Keir Starmer's Resignation and Leadership Contest

Starmer said he would oversee an orderly transition after bowing to pressure over weak poll ratings and poor local election results, triggering a leadership contest set to begin on July 9.

Reeves' Relationship with Starmer

Reeves, a close ally of Starmer, said no one could doubt her commitment to the outgoing prime minister, adding that she had worked alongside him for six years.

Burnham's Path to Premiership

Burnham, who is the only candidate to have put his name forward, is widely expected to be installed without a challenge, meaning he could become prime minister by mid-July. If appointed, he would be Britain's seventh leader in a decade.

Potential Cabinet Changes

Asked about reports she could be demoted, Reeves said cabinet decisions would be a matter for Burnham.

"I'm not going to pre-empt the decisions that the new prime minister will make. I'm backing Andy. I think he'd be a great prime minister, but those are his decisions, not mine," she said.

Economic Policy and Fiscal Rules

Reeves on Energy Bills and Fiscal Responsibility

She said she stood ready to provide targeted, temporary support on energy bills later this year.

Reeves said the next leader should stick to her fiscal rules, including balancing day-to-day spending with tax revenues and reducing debt as a share of output.

Burnham's Stance on Borrowing

Burnham has previously signalled he would keep current borrowing rules in place.

Reeves on the State of the Economy

"I know that whoever is prime minister and chancellor in the future will inherit a stronger economy than the one I inherited two years ago," she said.

(Reporting by Sam Tabahriti, Editing by Paul Sandle)

Key Takeaways

  • Reeves publicly backed Andy Burnham to succeed Keir Starmer as prime minister and declined to pre‑empt any reshuffle decisions (lse.co.uk).
  • Burnham’s landslide win in the Makerfield by‑election on June 19 secured his path into Parliament, making him the likely uncontested favourite to replace Starmer by mid‑July (internazionale.it).
  • Markets responded positively, with sterling rising to a 10‑month high versus the euro as investors focused on the potential new finance minister under Burnham, amid reports Reeves could be moved to a more junior role (marketscreener.com).

References

Frequently Asked Questions

Who is Rachel Reeves supporting to be the next UK prime minister?
Rachel Reeves has publicly stated her support for Andy Burnham to become the next UK prime minister.
Why is there a leadership contest in the UK Labour Party?
A leadership contest was triggered after Keir Starmer announced his resignation due to weak poll ratings and poor local election results.
Will Rachel Reeves retain her finance minister role if Burnham becomes prime minister?
Rachel Reeves said decisions about cabinet roles, including her own, will be made by Andy Burnham if he becomes prime minister.
What fiscal policies does Reeves want the next leader to maintain?
Reeves recommends the next leader stick to her fiscal rules, balancing day-to-day spending with tax revenues and reducing debt as a share of output.
When is the Labour leadership contest expected to begin?
The Labour leadership contest is set to begin on July 9.

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