Chaos as Labour civil war erupts over 'Andy Burnham's Chancellor pick'
Politics LIVE: Labour civil war erupts over 'Andy Burnham's Chancellor pick'
Candidates jostle for the key job of running the UK economy - follow for all the latest updates.
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Add us as preferred source Comments live By Katie Harris, Senior Political Correspondent, Steph Spyro, Deputy political editor and envionment editor 14:38, Thu, Jun 25, 2026 Updated: 14:38, Thu, Jun 25, 2026 
A Labour civil war was brewing, as several Cabinet ministers scrambled to be appointed Chancellor by Andy Burnham if he became Prime Minister. Rachel Reeves's top aide urged some of Britain's biggest companies and trade associations to lobby Mr Burnham to keep her as Chancellor, it has emerged, after reports she faces the sack.
Energy Secretary Ed Miliband is also said to be gunning for the role, but his bid could be thwarted by trade unions, who have questioned his zeal for net zero's impact on the top Treasury job. Former Health Secretary Wes Streeting and Foreign Secretary Yvette Cooper have also been thrown into the ring. Sir Keir Starmer announced his resignation on Monday, days after the former Manchester mayor was elected as the MP for Makerfield.
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18 mins ago14:38 Katie HarrisKhan says Trump 'appears to have a crush' on him
Sir Sadiq Khan has said Donald Trump “appears to have a crush” on him after the US President re-ignited their long-running feud.
Mr Trump told reporters in the White House’s Oval Office yesterday that the London Mayor was a “bad person” and a “horrible representative” for the UK, adding: “I don’t want to cause any problems, but your Mayor of London is grossly incompetent.”
Speaking at the launch of his Heat Ready Plan at Islington fire station, in north-east London, Sir Sadiq said: “I’m not sure why I’m living rent free inside President Trump’s head.
“I’m not quite clear why this man appears to have a crush on me.
“You know, all I would say is it could be because I’m the mayor of a progressive, multicultural, liberal, successful city.
“Last week, London won the Lee Kuan Yew Prize as the world’s best city. That’s probably why President Trump is upset.”
1 hour ago13:42 Jonathan WalkerAnalysis: Burnham hasn’t learned a thing from Starmer
Andy Burnham is set to walk into Number 10 the undisputed heir to Sir Keir Starmer. It doesn’t look good. In fact, Mr Burnham is making the same mistake Sir Keir did before him - by failing to think about how he communicates with the public.
2 hours ago12:41 Katie HarrisShould Rachel Reeves get a job in a Burnham Cabinet?
Have your say in our online poll on whether Rachel Reeves should get a job in a Burnham Cabinet.
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3 hours ago11:56 Katie HarrisStarmer defends decision to publish defence spending plan
Sir Keir Starmer has defended the decision to publish the defence investment plan amid a row with his likely successor Andy Burnham.
The Prime Minister said: “Everybody understands why it’s important that we spend the money that we must spend on our armed forces, and so it’s my intention to publish that ahead of the Nato summit.
“That’s the right time to publish it, when we will be coming together as Nato countries – the single-most effective military alliance the world has ever seen – to share our capabilities, and to make sure we emerge from that summit stronger as a military force.”
Starmer promises 'professional' handover
Sir Keir Starmer said he would “be professional” and ensure disruption is “absolutely minimised” as he hands over power.
Speaking on a visit to a cinema in Milton Keynes this morning, the Prime Minister said: “I am stepping down after two years, leaving the country in a better position than when I found it.
“I will do that with good grace, and I will do that making sure that there is an orderly transition, and that is what I am going to do.
“I’m going to be professional, I’m going to have foremost in my mind a sense of service and duty that has driven me as Prime Minister.
“I will continue to faithfully serve my country to make sure that any disruption is absolutely minimised, and that’s why I’m taking steps now to ensure that can be done in a sensible way.”
4 hours ago11:24 Katie HarrisReeves 'proud' of her record
Asked how she hoped the history books would remember her, Rachel Reeves said: “When I became Chancellor of the Exchequer, the first speech I gave was in the atrium of the Treasury, and I said in that speech that I would judge my time in office as a success if children from working-class backgrounds had more opportunities than when I became Chancellor, and whether women and girls felt that there should be no ceiling on their ambition.
“It’ll be up to others to judge whether I’ve achieved my goals, but I’m very proud of what I’ve done, and believe I have.”
Reeves says 'no one could doubt' her commitment to Starmer
Rachel Reeves said “no one could doubt” her commitment to Sir Keir Starmer in recent years amid questions over why she did not attend his resignation speech in Downing Street earlier this week.
The Chancellor told the BBC: “I’ve been by his side for six years now as shadow chancellor and then as Chancellor of the Exchequer."
She added: “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.”
Reeves calls on successor to continue with her economic plans
Rachel Reeves has urged her successor as chancellor to stay the course with her economic plans as they are “beginning to bear fruit”.
Asked at the British Chambers of Commerce conference what her advice would be to the next chancellor, Ms Reeves said: “I am not sure anyone wants my advice, but my advice would be: you’ve got a brilliant set of officials at the Treasury who will back you if you are clear about what you want to do, and I’ve been very clear about what I wanted to achieve as Chancellor.
“I wanted to restore stability to the economy, I wanted to induce investment, both public and private, into the economy, and I wanted to change how the economy works with a regulatory burden that is fairer and more efficient, with a planning system that actually allows things to get built in our country.”
She added: “I’m really proud of my record, and I hope that whoever is Chancellor in the future, whenever that future may be, sticks to what I’m doing because it is beginning to bear fruit, and we are seeing that investment return to the economy, that growth return to the economy, and crucially, that stability, so that businesses can plan and invest in the future.”
Reeves says it's a 'good thing' Burnham has committed to her fiscal rules
Rachel Reeves said it was a “good thing” Andy Burnham had committed to her fiscal rules.She told the British Chambers of Commerce conference in central London: “I think that Andy Burnham, who will be the next prime minister, has been really clear that he is committed to those rules.“And that is a good thing, because it means that businesses here can be confident that that stability… which is essential for getting inflation and interest rates down, will be continued.”
5 hours ago09:30 Katie HarrisReeves says it is up to Burnham who he picks as chancellor
It is up to Andy Burnham who he chooses as his Chancellor, Rachel Reeves has said.
Speaking at the British Chambers of Commerce conference in central London, Ms Reeves was asked if she wanted to stay on in the role.
She replied: “Those would be choices for him. I’m not going to pre-empt those, when he becomes Prime Minister he will make those decisions around the top team around him, but I’m not going to pre-empt those decisions.”
6 hours ago09:07 Katie HarrisBadenoch beats Farage on who would be better PM
Britons are now more than twice as likely to say Kemi Badenoch would be a better prime minister than Nigel Farage, according to the latest YouGov polling.
6 hours ago08:38 Steph SpyroIn a head-to-head, Britons are now more than twice as likely to believe Kemi Badenoch would be a better prime minister than Nigel Farage, having been divided on the question last summer
Badenoch: 38% (no change from 30 Apr-1 May)
Farage: 17% (-3)https://t.co/P59e7xtBFM pic.twitter.com/ljF7FotyP9\u2014 YouGov (@YouGov) June 25, 2026
Bridget Phillipson questioned on legacy as she faces axe from Cabinet
Education Secretary Bridget Phillipson has been asked if she is legacy building in case she is sacked or moved in a reshuffle under Andy Burnham.
She said: “I’ve been in politics a long time now. There are lots of ups and downs. I’m getting on with things.”
Burnham warned not to axe triple lock
Andy Burnham has been urged not to axe the "crucial" triple lock.
Campaigners fear the pensions safety net is at risk as it is believed advisers to the likely next PM think it should be scrapped.
Tory Shadow Chancellor Sir Mel Stride said: "Pensioners have far less ability to improve their financial circumstances. They can't simply take on another job, work additional hours, or increase their income.
"That's why Andy Burnham must stand by pensioners, and why the Conservatives remain committed to the triple lock."
The triple lock sees the state pension rise each year in line with the highest of average earnings growth, inflation or 2.5%.
Mr Burnham, who looks set to enter No10 within weeks, has said he will honour Labour's manifesto pledge to keep the triple lock until the end of this parliament, but has not committed to it beyond that.
Reeves to be interviewed at 9am as she fights to keep job
Chancellor Rachel Reeves is facing the press this morning as she fights to keep her job under Andy Burnham.
The Chancellor is among several ministers making themselves very visible while Mr Burnham weighs up who to appoint to his Cabinet.
Reeves will be grilled by Sky News’ Sophy Ridge at the British Chambers of Commerce conference.
Tresury minister refuses to say who next Chancellor should be
A Treasury minister declined to comment on who the next chancellor should be once the new prime minister is in office.
Dan Tomlinson told Sky News: “That’s a decision for whoever the prime minister is.
“As we all know, I think it seems very likely now that’s going to be Andy Burnham.
“I’m not going to play fantasy cabinet with you here today.”
Union issues warning to next PM
The head of the TUC has urged the next prime minister not to “water down” their agenda.
Paul Novak told Sky News: “We had a record year for bankers’ bonuses last year in the City of London.
“I don’t think it’s unfair to ask those with the broadest shoulders to help out the families who are going to struggle with those heating bills.
“But the key thing is be prepared to face down vested interests.
“We’ve seen it already in the right-wing press over the last couple of days, scare stories about a new prime minister, encouraging him to water down any potential agenda.
“We’re very clear, you can’t keep those vested interests happy. Show you’re on the side of working people, their families and communities, and deliver the change the country needs.”
Union tells next PM to prove they are 'on the side of working people'
The next prime minister needs to spend their first 100 days in office “proving they’re on the side of working people”, the head of the TUC has said.
TUC general-secretary Paul Novak told Sky News he thought Sir Keir Starmer could be “proud of the work that his Government did” including passing the Employment Rights Act, investing in the NHS and ending the two-child benefit cap.
But he added: “The reality is all too often that good work was overshadowed by self-inflicted mistakes, and I think for far too many people they just feel the change – the one word that was on the front of the manifesto – in July 2024 hasn’t been delivered.
“So we want the new prime minister to spend the first 100 days delivering policies with every single policy, every single speech proving they’re on the side of working people, their families, communities.
“That’s action to tackle the cost-of-living crisis and to rebuild our economy, which isn’t working for far too many people.”
Reeves breaks silence on Burnham
Rachel Reeves has backed Andy Burnham as the next PM despite speculation he could sack her.
The new Makerfield MP, who could enter 10 Downing Street within weeks, is widely expected to replace Ms Reeves as Chancellor.
But she would not be drawn on reports that she may accept another more junior rule.
She told the BBC: “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 to make.”
Trump says Burnham is 'extremely liberal'
Donald Trump has said Andy Burnham is "extremely liberal" in his first comments on Britain's likely next PM.
Asked at the White House what he knew about Mr Burnham, the US President said said: “I don’t know, I think I see that he was, I guess, the mayor of a town.
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“I hear he’s extremely liberal, extremely, so that means he probably won’t open up the North Sea.”
