Sir Keir Starmer’s resignation has shifted attention to who may run the Treasury if Andy Burnham becomes prime minister.
Sir Keir Starmer’s resignation has opened a new contest over who could take charge of the UK’s finances, with Andy Burnham widely expected to become the next prime minister and likely to consider replacing Chancellor Rachel Reeves.
The choice matters well beyond Westminster. The next chancellor would inherit a difficult economic brief that includes high debt, weak growth, welfare reform, defence spending pressures and the fallout from the US-Israel war with Iran.
Wes Streeting, the former health secretary, is described as the bookmakers’ favourite after backing Burnham rather than pursuing the leadership himself. Simon French, chief economist at Panmure Liberum, told the BBC that Streeting would be a “relatively market-friendly option” because of his pro-growth comments, though he also said Streeting could carry political risk if he later sought the top job.
Lord Jim O’Neill, the economist and cross-bench peer who has advised Burnham, warned against treating the Treasury as a reward for political support. “There are clearly some people pushing to be chancellor who feel they are owed it for their support,” he told the BBC, without naming anyone.
Ed Miliband is also high on the list of possible choices. The former Labour leader is seen as politically closer to Burnham than Streeting, which Paul Johnson, the former director of the Institute for Fiscal Studies, said could help avoid friction between Number 10 and Number 11. But Miliband’s record as energy secretary could also draw scrutiny from investors and unions, with critics linking his net zero stance to concerns about energy costs and North Sea jobs.
Pat McFadden, the work and pensions secretary, is viewed by some analysts as a steadier Treasury option. He has held shadow Treasury roles and served as a business minister in a previous Labour government, while his current welfare brief could be relevant if reform becomes one of the next chancellor’s biggest tasks. French said markets may see McFadden as “the safest pair of hands,” though his close association with Starmer may count against him if Burnham wants a sharper break.
Yvette Cooper, now foreign secretary, is another possible compromise candidate. She previously served as chief secretary to the Treasury under Gordon Brown and is viewed as occupying political ground between Miliband and the more fiscally cautious figures around the cabinet. Danni Hewson of AJ Bell described her to the BBC as a “middle of the road” option, but also “a bit more of an unknown.”
Reeves could still remain in post, although the BBC report said that appears less likely because of her close ties to Starmer. Burnham has previously said he would keep Reeves’ fiscal rules, and Reeves appeared in his Westminster photoshoot after he was sworn in as MP for Makerfield on Monday, though she was absent from Starmer’s resignation speech.
Other names being mentioned include Home Secretary Shabana Mahmood, former defence secretary John Healey, Darren Jones and Torsten Bell. For now, the key question is whether Burnham wants continuity at the Treasury, a market-facing appointment or a chancellor more closely aligned with his own political instincts.
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