Nine reasons Andy Burnham could be forced to KEEP Rachel Reeves as Chancellor

Rachel Reeves has plumbed depths of unpopularity but she may cling onto control of the Treasury in the Andy Burnham era, writes David Williamson

Share Article Facebook X LinkedIn Reddit Bluesky Email Copy Link Link copied Add us as preferred source Comments ANALYSIS By David Williamson, Chief Political Commentator 16:59, Thu, Jun 25, 2026

Rachel Reeves could survive the change of PM (Image: Getty Images)

Allies of Chancellor Rachel Reeves are fighting for her to keep control of the Treasury in the Andy Burnham era. Here are nine reasons why she may survive the coming reshuffle when Sir Keir Starmer moves out of Downing Street.

Get the latest politics news - straight from our team in Westminster and more Invalid email

We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy

Labour cannot afford to look as if the first two years have been a disaster (Image: Getty Images)

1. Sacking the Chancellor would be an almighty admission of failure that Labour has let down Britain on the economy

If Andy Burnham fires Rachel Reeves as Chancellor it will be an admission that Labour has messed up the economy – and that will make winning the general election due in 2029 incrediblly difficult. Rishi Sunak was unable to banish voters' anger at the turmoil of the Liz Truss era, and Mr Burnham cannot look forward to a long tenure as prime minister if Labour is seen as a party of economic incompetence.

If he ousts Ms Reeves he will come under intense pressure to deliver radically faster growth than she achieved, just as the world economy confronts a host of challenges. If Ms Reeves is banished and the UK splutters, Mr Burnham will be cast as a hapless PM who made a bad situation worse.

Andy Burnham's first 100 days will be crucial for setting the tone of his premiership (Image: Getty Images)

2. Market panic would doom Andy Burnham before his premiership has even started

Mr Burnham will be desperate to avoid even a modest spike in the cost of borrowing. In the last financial year, the Government spent around £110billion on debt interest – the equivalent of 3.6% of GDP.

To put it in perspective, the UK spent just £60.2billion on defence in 2024-25. Higher borrowing costs would make it even harder to ramp up defence spending and invest in public services – and would hike pressure on any PM to cut the country's giant benefits bill.

Putting a Left-winger in control of the Treasury would fuel market anxiety. Ms Reeves has spent her time as Chancellor working to pacify the bond markets, and Mr Burnham may conclude he needs her to calm traders' nerves.

Would the country see Ed Miliband as the real decision-maker if he took over the Treasury? (Image: Getty Images)

3. He won't want the Treasury to become a rival centre of power

Sir Tony Blair's premiership featured nearly-daily reports of tensions between Downing Street and Chancellor Gordon Brown's Treasury team. Mr Burnham may fear that if puts a big beast such as Ed Miliband or Wes Streeting in the Treasury – someone who has plentiful ideas about how the country should be run – this will set the stage for a similar power struggle.

Ms Reeves is not as aspiring prime minister. This is her dream job. If she stays in post she will be focused on ensuring financial stability and supporting growth, not plotting how to move from Number 11 to Number 10.

Rachel Reeves endorsed Andy Burnham when he was running against Jeremy Corbyn (Image: Daily Mirror)

4. Andy Burnham and Rachel Reeves are old allies

Back in 2015, Ms Reeves endorsed Andy Burnham in the Labour leadership contest and looked set to be his Shadow Chancellor. Instead, the contest was won by Jeremy Corbyn and John McDonnell took on this role.

Personal relationships only count for so much in politics, but Mr Burnham may decide he wants an old ally by his side in the difficult days ahead. His premiership may well be defined by the economy and he needs a confidante who will talk him out of making mistakes.

President Trump has made it clear he does not have high expectations for the likely next PM (Image: AP Photo/Jacquelyn Martin)

5. Britain is in danger of looking like a basketcase

Britain is about to have its seventh prime minister since 2016 and a narrative is taking hold in the wider world that Britain, far from being a bastion of stability, is a country where something is fundamentally broken.

Brits used to chuckle at the rapidity with which Italy changed leaders but Giorgia Meloni has been PM there since October 2022. Mr Burnham will want some familiar faces to show up at international summits in case the world thinks the UK is in the grip of inexperienced but power-hungry apparatchiks who are likely to be replaced imminently by the next round of plotting politicos. Ms Reeves has a wide circle of influential friends and if she shows up at Davos she can assure investors and finance ministers that UK PLC is still on the road to growth.

Andy Burnham will not want to populate the backbenches with disgruntled ex-ministers (Image: AFP via Getty Images)

6. Burnham won't want powerful enemies on the back benches

The downside of having a giant majority is the challenge of keeping Labour MPs happy, and this will be an even tougher challenge if seething, well-connected former ministers glare at him and hope he suffers a speedy comeuppance. Allies of Sir Keir and Ms Reeves may well believe they have been ousted for taking tough decisions; the likes of Margaret Thatcher and Bill Clinton once suffered abysmal poll ratings but went on to win millions of voters around – the PM has been denied this chance.