Andy Burnham is set to pledge growth and commit to Labour’s budget rules as he seeks to burnish his economic credentials after Sir Keir Starmer’s resignation left him all but certain to enter No 10.
The former Greater Manchester mayor is expected to give a speech on fiscal policy next week, as first reported by The Times, after returning to Westminster as an MP following his Makerfield by-election victory.
Talks are also said to be taking place about a prospective new-look Cabinet, with Energy Secretary Ed Miliband and Home Secretary Shabana Mahmood both tipped as potential candidates to replace Rachel Reeves as chancellor.
But Mr Burnham’s allies said no jobs had been given and no deals made as of Monday evening.
Her successor would also be bound by the existing fiscal rules, which aim to restrict borrowing and pay for day-to-day spending out of tax revenues by the end of the decade.
The prospect of a coronation for the former mayor looked increasingly likely on Monday as his main rival, former health secretary Wes Streeting, backed him to succeed Sir Keir.
However, Darren Jones is said to be weighing up whether to launch a leadership bid, which could complicate Mr Burnham’s plans, after reports that Starmer loyalists were urging him to stand.
Sources close to the Chief Secretary to the Prime Minister said he was not currently minded to run in a contest but that he would want assurances on economic policy, amid concerns among some of potential unease in the markets.
If Mr Burnham is the only candidate to received the support needed to stand in the contest for the vacant Labour leadership, he could become prime minister in mid-July.
In an emotional statement outside No 10 on Monday, the Prime Minister acknowledged he had lost the support of his MPs and promised an “orderly handover of power” to his successor.
Defending his record, he pledged to give the next leader “my full and unequivocal support, knowing that they will inherit a Britain that is far stronger and fairer than the one I inherited two years ago”.
Sir Keir said he would ask Labour’s ruling National Executive Committee (NEC) to set out a timetable that would see a new leader in place by the time Parliament returns from its summer recess on September 1.
But the anointing of a new leader could come much sooner, with nominations closing on July 16.
Potential candidates have until then to amass the support of at least 81 Labour MPs.
On Monday evening, Sir Keir and his wife Victoria hosted No 10 staff for drinks in the No 10 garden, where they thanked those present for the support they had given.
Lady Starmer told them: “I just wanted to say thank you from me.
“I obviously love Keir and support him as much as I can, but there’s only so much I could do, and it’s you guys who gave that support day in, day out, and I am personally really grateful for that. So, thank you all.”
Mr Burnham praised Sir Keir’s “huge service to our country” but said his resignation “marks the beginning of a transition”.
He said: “The Labour movement has always been at its strongest when it looks forward with confidence and purpose.
“This is what we will do from here and we will make sure this transition is a positive process of renewal for our party and our country.”
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