Andy Burnham ‘to sack Rachel Reeves’ as he prepares bid to save Britain’s 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 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.

Labour’s newest MP looks like he’ll have an unopposed run at No10 – but Darren Jones, a close ally of Sir Keir Starmer, is said to be sniffing out the prospect of whether he could find 81 MPs to back him and trigger a contest.

A source close to Mr Jones told The Times he was “not minded to run, but will want assurances on economic and national security policy before signing up to a coronation”.

Another potential contender is former Armed Forces minister Al Carns, who resigned shortly after Defence Secretary John Healey over a week ago.

The former Royal Marines officer is understood to be making up his mind on whether to launch a challenge to Mr Burnham.

Speaking to ITV News, he said he was “not ready to make a decision on this in any way shape or form”.

“What I would say is we need to move from the politics which talk through the tactics and actually think about the strategy and what I’m really looking for are big objective outcomes that we want to get to in 2029 and 2034-35,” he said.

“We need to have a clear and concise discussion about what this country wants to be at the next general election and the general election after that,” he added.

In Mr Carns’s resignation letter, he referenced the delayed Defence Investment Plan (Dip), which he described as “inadequate to deal with the threat we face”.

The former colonel pointed the finger at Rachel Reeves’ department for the plan’s lack of funding, accusing the Treasury of treating “defence as a cost to be contained”.

He said: “The Defence Investment Plan is inadequate to deal with the threat we face. That figure was not set by the threat, but by the Treasury, which treats defence as a cost to be contained.”

Deputy Prime Minister David Lammy said on Monday the Government is planning to publish the Dip before July 7.

However, it is understood the Dip will likely be delayed until a new Prime Minister is in place, which would be in September.

Mr Burnham is said to be eager to evaluate the proposed Dip as it stands and make decisions on it himself.