According to reports, allies of Chancellor Rachel Reeves have been lobbying Labour MPs to support her remaining in the role even under a new leader.
Ed Miliband is rumoured to be favoured by Andy Burnham to replace Rachel Reeves (Image: Getty)
Ed Miliband is being tipped as a potential Chancellor if Labour changes leader – so what do you think? The Energy Secretary has emerged as one of the leading contenders for the Treasury should Sir Keir Starmer be replaced as Prime Minister amid growing turmoil within Labour.
According to reports, allies of current Chancellor Rachel Reeves have been lobbying Labour MPs to support her remaining in the role even under a new leader, amid speculation that Greater Manchester Mayor (and Makerfield by-election candidate) Andy Burnham could seek the party leadership if he returns to Westminster.
The Guardian reported that some Labour figures believe Mr Burnham could favour Mr Miliband for the Chancellor’s job, setting up a battle between two of the party’s most senior figures over who would oversee Britain’s finances.
Supporters of Ms Reeves argue that her commitment to Labour’s fiscal rules and reputation with investors make her the safest pair of hands at a time of economic uncertainty.
One Labour MP close to the Chancellor told the newspaper that “the biggest fear for the bond markets and the unions is Ed Miliband”, while another argued that Ms Reeves’ credibility with financial markets would provide “the necessary assuredness”.
However, Mr Miliband’s backers see him as a heavyweight politician with a clear vision for the economy and Britain’s energy future.
Chancellor Rachel Reeves (Image: Getty)
Andy Burnham is Labour’s candidate in the Makerfield by-election (Image: Getty)
The former Labour leader has made the green transition the centrepiece of his political career and remains one of the best-known figures in the Cabinet.
The speculation comes as Labour faces questions over its direction following a difficult period in government, with divisions emerging over issues including welfare reforms, energy policy and the cost of living.
While no leadership contest has been announced and Mr Burnham has not publicly stated who he would appoint as Chancellor, Labour insiders believe both Ms Reeves and Mr Miliband would be among the frontrunners for the role.
The prospect of Mr Miliband taking charge of the Treasury has already divided opinion among Labour MPs, with some arguing he would bring fresh thinking and others warning that financial markets could react nervously.
