Burnham latest: Reeves backs Makerfield MP to become prime minister – but looks set to be sacked as chancellor

Sir Keir Starmer’s resignation was the “right decision” but he did so with “good grace”, the TUC general secretary said.

Asked if he was happy with the prime minister stepping down, Paul Nowak told Sky News: “No, I’m not happy to see the prime minister resign in this way, but I think it’s the right decision.

“I think it was a decision that he made graciously, and I think we have an opportunity now, in July 2024, to actually enact the change that people voted for.”

A Treasury minister declined to comment on who the next chancellor should be once the new prime minister takes office.

Dan Tomlinson told Sky News: “This is a decision that will be made regardless of who the prime minister is.

“As we all know, I think there’s a very good chance it’s Andy Burnham now.

“I’m not here playing fantasy cabinet with you today.”

Rachel Reeves and John Healey “worked very effectively together” before the former defense secretary left office accusing the Treasury of blocking defense funding, a minister has claimed.

Dan Tomlinson, the treasury secretary, said: “My understanding is that they have been working together very effectively for weeks as the government has been working on its defense investment plan.

“I know the Chancellor has been in contact with Dan Jarvis almost every day since his appointment. And of course there are always tensions between individual government departments and within the Treasury, because it’s the Treasury’s job to look at all the pieces to make sure we’re also managing the public finances and investing in the things we need, including defence.”

TUC general secretary Paul Nowak said Sir Keir Starmer could be “proud of the work his government has done” but it was “overshadowed by the mistakes he has made himself”.

The union boss told Sky News there needed to be a “reset” under the new prime minister.

He said: “I think Keir Starmer can be proud of the work his government has done to deliver the Employment Rights Act, record investment in the NHS, bring the railways back into public ownership, abolish the two-child benefit cap – the list can go on.

“The reality is that all too often good work is overshadowed by self-inflicted mistakes, and I think too many people feel that change, which is the one word on the front of the July 2024 manifesto, has not been delivered.

“That’s why we want the new prime minister to spend his first 100 days delivering policies that prove, policy by policy, speech by speech, that he stands for working people, their families and their communities.

“And this is an action to combat the cost of living of the crisis and rebuild our economy that is useless for so many people.”

Rachel Reeves has said she is “backing” Andy Burnham to become Britain’s next prime minister, amid speculation she could be replaced as Chancellor if he takes office.

Speaking to the BBC, Ms Reeves, who is tipped to replace Mr Burnham if he becomes prime minister, would discount reports that she might accept another role.

“I will not stand in the way of the decisions the new prime minister will make,” he said.

“I think he would be a great prime minister, but those are his decisions, not mine to make.”

The Makerfield MP, who has stepped forward to replace Sir Keir Starmer, has reportedly not yet made up his mind on his choice of chancellor.

Ms Reeves added that “no one can doubt” her devotion to Sir Keir in recent years.

“I have been with him for six years as shadow chancellor and then as chancellor of the exchequer,” he told the public broadcaster.

The chancellor said: “I know whoever becomes prime minister and chancellor in the future will inherit a stronger economy than the one I inherited two years ago.”

When it comes to personal finance, much of what Labor has tried to do over the last few years has potential.

But the implementation leaves much to be desired, and the latest changes to the ISA environment fall right in that bracket.

Under new rules announced on Tuesday and coming into force next year, those holding cash in stocks and ISAs will face a 22 per cent tax on interest earned.

US President Donald Trump made his first comments regarding Prime Minister candidate Andy Burnham during his meeting with the NATO Secretary General.

“I hear he’s extremely liberal, extremely liberal,” Trump said after reporters asked for his opinion of Labor MP for Makerfield Andy Burnham.

The President then turned his attention to the North Sea, suggesting that Mr Burnham “probably won’t open the North Sea”.

“I gave Keir Starmer some pretty good advice, I said open up the North Sea,” he added.

He said Aberdeen was “the hottest city on the continent, an oil city”. But because the UK government has permanently blocked new oil and gas exploration in the North Sea, Trump claims that “Britain is dying”.

He added that oil companies would “sacrifice everything to drill in the North Sea.”

Asked if he would like to be first on Mr Burnham’s list to visit if he becomes the next Prime Minister, Trump said: “No. But I think we have a different belief. He’s very liberal.”