Andy Burnham is poised to pledge economic growth and fiscal discipline, aiming to bolster his credentials as Sir Keir Starmer’s resignation makes him the likely next prime minister.
Having recently returned to Westminster as an MP after his Makerfield by-election win, the former Greater Manchester mayor is expected to deliver a fiscal policy speech next week.
Speculation surrounds a new Cabinet, with Energy Secretary Ed Miliband and Home Secretary Shabana Mahmood tipped as potential Chancellors to replace Rachel Reeves, though Mr Burnham’s allies deny any deals.
Any successor would be bound by existing fiscal rules, which aim to restrict borrowing and fund day-to-day spending from tax revenues by the decade’s end.
A swift coronation for Mr Burnham appeared likely on Monday, after his main rival, Wes Streeting, publicly endorsed his bid to succeed Sir Keir.
However, two senior Labour MPs are considering whether to launch leadership bids, which could complicate Mr Burnham’s plans.
Reports have suggested that Starmer loyalists were urging Chief Secretary to the Prime Minister Darren Jones to stand.
Sources close to him said he was not currently minded to run but that he would want assurances on economic policy, amid concerns among some of potential unease in the markets.
And former armed forces minister Al Carns said he had not ruled out standing, telling ITV’s Peston programme: “I’m not ready to make a decision on this.”
If Mr Burnham is the only candidate to receive 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 1 September.
But the anointing of a new leader could come much sooner, with nominations closing on 16 July.
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.”
