Rachel Reeves has moved to protect her position as chancellor by informing associates she wishes to continue even if a new prime minister takes over. Her backers have encouraged lawmakers to support her should Keir Starmer step down later this year, arguing she alone can protect national finances. This effort occurs as Labour members position themselves ahead of a possible leadership shift if Andy Burnham wins the Makerfield by-election and succeeds Starmer. Reports indicate Burnham may name Ed Miliband as chancellor in that scenario. Reeves allies counter that Miliband lacks credibility with bond markets that determine borrowing rates. One lawmaker close to the chancellor expressed worry that replacing her could undermine stability for short-term political gains. Another noted her market experience would offer continuity, while Miliband would not. Representatives for both declined comment. Amid party tensions and Burnham’s challenge to Starmer, Reeves has enjoyed a stronger period. The International Monetary Fund raised its UK growth projection to 1 percent. Inflation dropped to 2.8 percent, exceeding expectations. The government delayed a fuel duty increase. Reeves also unveiled a temporary VAT reduction on family venues like play centers. Treasury staff kept the plan secret until launch. Yet challenges remain, including potential leadership changes and difficulties addressing economic pressures from the Iran conflict. Borrowing exceeded forecasts last month. Reeves responded firmly to a Reform UK heckler during an interview and hosted lawmakers at her residence while addressing supermarket disputes over price measures. Supporters stress her fiscal record as essential for long-term stability. Analysts note early unpopular decisions have aided credibility, though some call for bolder steps on living costs such as rent controls or energy interventions.
