UK Chancellor Rachel Reeves has defended her management of the British economy, expressing confidence that current policies are delivering positive results while throwing her support behind Andy Burnham as the country’s next prime minister.
Speaking at a business conference, Reeves said the government’s economic strategy was beginning to produce results and urged future leaders to maintain the current approach. She highlighted progress in areas such as economic growth, inflation control, and fiscal stability, while acknowledging that further work remains.
Her remarks come amid growing political developments following Prime Minister Keir Starmer’s decision to step down after losing the backing of several Labour lawmakers. Burnham has emerged as the leading contender to succeed him and could assume office within weeks if no rival candidate enters the race.
Despite reports suggesting Burnham may appoint a new chancellor if he becomes prime minister, Reeves said she would not speculate on future cabinet selections. However, she noted that she has worked closely with Burnham on initiatives aimed at giving more financial and decision-making powers to regional authorities.
Reeves stressed that Burnham has consistently supported the government’s fiscal framework, which is designed to ensure that everyday public spending is funded through tax revenues while borrowing is reserved primarily for long-term investment projects.
Addressing calls from some Labour members for looser fiscal rules to allow increased spending, Reeves argued that maintaining financial discipline is essential for economic stability. She warned that poor management of public finances could lead to higher inflation, increased taxes, and rising interest rates that would ultimately affect businesses and households.
The chancellor maintained that the government had strengthened the economy compared to previous years and said future administrations would inherit a more stable financial environment.
She also praised Burnham’s record in local government, describing him as an effective communicator with a proven ability to deliver results. According to Reeves, those qualities position him strongly to lead the country through its next political chapter.
Reflecting on her tenure, Reeves acknowledged that there were lessons to learn but said she remained proud of achievements including wage increases and efforts to improve economic performance across the United Kingdom.
