Key facts
- Rachel Reeves has warned Andy Burnham, the frontrunner for Prime Minister, to be prepared for "shocks and challenges" upon entering Downing Street.
- Reeves stressed the importance of Burnham having a "worked through plan" to govern effectively.
- Burnham is expected to be appointed Prime Minister on July 20, having secured 322 nominations from Labour MPs.
- Burnham's policy pledges include devolution, reindustrialisation, and bringing public services under public control.
- Reeves is set to announce an expansion of the Growth Guarantee Scheme to support small and medium-sized businesses.
Rachel Reeves has warned Andy Burnham, the frontrunner to become the next Labour leader and Prime Minister, that he must be prepared for immediate "shocks and challenges" upon entering Downing Street. The Chancellor stressed the importance of having a "worked through plan" to govern effectively in Britain, stating that governing is hard and many challenges will arise.
Burnham is expected to secure the leadership on July 17, with his appointment as Prime Minister following on July 20, having secured the backing of 322 out of 403 Labour MPs. He has begun outlining his vision for a significant "rebalancing of power" across the UK, including the establishment of a "No. 10 North hub" to decentralize authority from Whitehall. His policy pledges also include widespread devolution, reindustrialisation, putting public services under public control, and investing in UK defence spending.
Reeves acknowledged the public's impatience for change and the need for tangible improvements in people's lives. She expressed confidence that Burnham would inherit a stronger economic foundation than she and Keir Starmer did when they took office. Morgan McSweeney, Starmer's former top aide, admitted that Labour was not prepared enough for government after its 2024 election win.
Louise Haigh, a key ally of Burnham, indicated that he has been preparing for a leadership bid for at least a year. Reeves stated that Burnham's ambition to lead the Labour party was "perfectly reasonable."
In what is expected to be Reeves’ last major act as Chancellor, she will deliver a Mansion House address on Tuesday aimed at unlocking finance for small businesses. She will announce an expansion of the Growth Guarantee Scheme, which provides a 70 per cent government guarantee on commercial loans to SMEs of up to £2 million, supporting an additional £2 billion in lending by the end of the 2028 financial year.