UK's Reeves supports Burnham to be PM despite chance of demotion

(Sharecast News) - UK Finance Minister Rachel Reeves on Thursday said she backed Andy Burnham to be the next prime minister as she sought to keep some sort of role in a new government. Burnham, who was re-elected to parliament last week, is the hot favourite to succeed Keir Starmer who resigned on Monday in response to his growing unpopularity.

Reeves told the BBC she and Burnham were friends, adding: "I'm supporting Andy to be prime minister." Reports have emerged that Energy Secretary Ed Miliband and former health secretary Wes Streeting were contenders to lead the Treasury.

In response to suggestions Reeves might be given a lessor role in Cabinet, Reeves said "those are his (Burnham's) decisions, not mine to make".

Despite living next door to Starmer in Downing Street, Reeves was conspicuous by her absence when Starmer made an emotional resignation speech. However, she was equally prominent for a massive group selfie taken by Burnham in Westminster Hall just after he was sworn in as an MP.

The choice of finance minister - or chancellor as the post is called in the UK - is being keenly watched. Some are calling on Burnham to keep Reeves in post for continuity.

However, she has faced criticisms from business groups over higher taxes and this week angered savers by slapping a 22% flat tax on previously tax-free cash and shares Individual Savings Accounts in order to force investors to plough their money into the stock market.

Meanwhile, Miliband has faced absurd accusations of being a communist by sections of the hard right British media who despise his pro--green policies, while Streeting's camp claim he would be a more reassuring pick to keep febrile bond markets onside despite his mixed record at the health department.

Burnham, who once said the UK needed to stop being "in hock" to the bond markets, has since modified his tone to say he would abide by current fiscal rules to meet day-to-day government spending.

Reporting by Frank Prenesti for Sharecast.com