Andy Burnham is expected to sack Rachel Reeves as Chancellor as part of his preparations for power.
The Makerfield MP is set to deliver a major policy speech next week in a bid to reassure the markets and hype up his credentials on the economy.
Mr Burnham, The Times revealed, will pledge to grow the economy and commit to Labour’s budget rules amid concern in the markets about his looming move to No10.
He will also pledge to reduce the national debt and the cost of borrowing in what’s been billed as his “credible” growth plan.
Talks over who may sit at Mr Burnham’s Cabinet table are underway – with Ms Reeves potentially replaced by one of Wes Streeting, Ed Miliband or Shabana Mahmood.
However, Mr Burnham’s allies insist no jobs had been given and no deals had been made as of Monday evening.
Mr Miliband had been a top-runner for the role of Chancellor, but it has been said members of the Cabinet believe he is not business-minded enough and will harm market confidence.
Andy Burnham is expected to sack Rachel Reeves as Chancellor as part of his preparations for power.
The Makerfield MP is set to deliver a major policy speech next week in a bid to reassure the markets and hype up his credentials on the economy.
Mr Burnham, The Times revealed, will pledge to grow the economy and commit to Labour’s budget rules amid concern in the markets about his looming move to No10.
He will also pledge to reduce the national debt and the cost of borrowing in what’s been billed as his “credible” growth plan.
Talks over who may sit at Mr Burnham’s Cabinet table are underway – with Ms Reeves potentially replaced by one of Wes Streeting, Ed Miliband or Shabana Mahmood.
However, Mr Burnham’s allies insist no jobs had been given and no deals had been made as of Monday evening.
Mr Miliband had been a top-runner for the role of Chancellor, but it has been said members of the Cabinet believe he is not business-minded enough and will harm market confidence.
However, the Energy Secretary’s allies have denied this sentiment, saying he is the only politician with the knowledge and insight to fix the economy.
Mr Burnham officially re-entered Westminster politics yesterday as he was sworn in as Makerfield’s MP
| PA
Mr Streeting was also considered as a favourite to replace Ms Reeves, particularly after he announced he supported Mr Burnham’s leadership move, two hours after Sir Keir gave his resignation speech.
The former Health Secretary, a role also held by Mr Burnham, said the Makerfield MP could deliver “the change our country needs” and was no longer interested in taking part in a leadership contest.
Ms Mahmood is also being eyed up for the role as Chancellor, but it is understood she wishes to stay as Home Secretary.
Another planned switch up involves placing ex-Goldman Sachs banker and Treasury minister Lord O’Neill of Gatley and Andy Haldane, a former chief economist at the Bank of England, in Mr Burnham’s Government.
