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Andy Burnham plans cabinet reshuffle, Rachel Reeves set for reduced Treasury role

Andy Burnham plans cabinet reshuffle, Rachel Reeves set for reduced Treasury role
Burnham eyes cabinet shake-up

As Labour's expected next leadership transition takes shape, Andy Burnham is assembling a cabinet and backroom team centered on trusted Manchester allies. Rachel Reeves is unlikely to remain chancellor if Burnham takes power, while decisions on senior appointments are expected to begin emerging this week.

Highlights

  • Andy Burnham is preparing to move Rachel Reeves from the chancellor role, considering Ed Miliband, Wes Streeting, Yvette Cooper, and Shabana Mahmood as possible replacements.
  • Several allies from Burnham's Greater Manchester tenure, including Tom Whitney and Caroline Simpson, are expected to secure senior roles in Downing Street and government operations.
  • Keir Starmer is set to return to the backbenches and remain an MP, as Burnham finalizes key appointments with announcements expected as soon as Wednesday.

Cabinet choices and transition planning

As reported by Financial Times, Burnham is preparing to move Reeves out of the chancellor role and offer her a different cabinet post, according to people close to him. The choice of UK finance minister is described as his biggest immediate dilemma, with alternatives said to include Ed Miliband, Wes Streeting, Yvette Cooper and Shabana Mahmood.

People around Burnham say Reeves, who has served as chancellor since July 2024, has not succeeded in her effort to stay in the post under a Burnham-led government. One ally of Reeves says she wants to remain chancellor, but that her priority is still to serve in a Labour administration.

Before setting out his senior ministerial team, Burnham is expected to confirm key behind-the-scenes appointments as soon as Wednesday. Sir Keir Starmer is also expected to return to the backbenches while remaining an MP, according to his allies.

Manchester allies positioned for senior influence

Several figures linked to Burnham's time as mayor of Greater Manchester are being considered for influential roles in Downing Street and across government operations. Tom Whitney is seen as likely to play a key part after earlier working with Burnham as shadow health secretary and later as a policy adviser in Manchester.

Whitney currently serves as a special adviser to Transport Secretary Heidi Alexander and previously advised Liverpool metro mayor Steve Rotheram. Allies view him as a trusted political operator, and he is credited with helping bridge divisions during negotiations over Northern Powerhouse Rail last year.

Caroline Simpson, chief executive of the Greater Manchester Combined Authority, is also expected to secure a role, though not as chief of staff. Officials in Manchester point to her record on delivery and regeneration, including work linked to Stockport's economic revival, while John Wrathmell, the authority's strategy director, is regarded by allies as a central economic thinker behind Burnham's "Manchesterism" approach.

Burnham's communications chief Grace Pritchard is expected to join him in Downing Street, while Donjeta Miftari is outlined for another senior communications job. Abby Tomlinson and former Makerfield MP Josh Simons are also seen as close to Burnham, with Simons potentially in line to lead policy despite criticism earlier this year over emails in which he falsely linked journalists to a "pro-Kremlin" network before later apologising.

Our earlier article on the UK’s weak growth and Labour’s economic credibility outlined how years of competing political narratives have obscured practical lessons from the last sustained expansion before the Brexit vote. We noted that Brexit-era border frictions and a shift in Labour’s post-2008 economic messaging have contributed to today’s structurally weaker outlook, while a Burnham-led Labour government could still change course with reforms to support longer-term growth.

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