Andy Burnham Starmer resignation

London — Andy Burnham is set to pledge growth and commit to Labour’s budget rules as he seeks to burnish his economic credentials after Keir Starmer’s resignation left him on course to take over as British leader.

The former Greater Manchester mayor is expected to give a speech on fiscal policy next week, as first reported by The Times, after returning to Westminster as a member of parliament (MP) following his Makerfield by-election victory.

Talks are also said to be taking place about a prospective new-look Cabinet, with Energy Secretary Ed Miliband and Home Secretary Shabana Mahmood both tipped as potential candidates to replace Rachel Reeves as chancellor.

But Burnham’s allies said no jobs had been given and no deals made as of Monday evening.

Her successor would also be bound by the existing fiscal rules, which aim to restrict borrowing and pay for day-to-day spending out of tax revenues by the end of the decade.

Andy Burnham Starmer resignation

The prospect of a coronation for the former mayor looked increasingly likely on Monday as his main rival, former health secretary Wes Streeting, backed him to succeed Starmer.

However, Darren Jones is said to be weighing up whether to launch a leadership bid, which could complicate Burnham’s plans, after reports that Starmer loyalists were urging him to stand.

Sources close to the chief secretary to the prime minister said he was not currently minded to run in a contest but that he would want assurances on economic policy, amid concerns among some of potential unease in the markets.

If 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 the prime minister’s office at 10 Downing Street on Monday, Starmer acknowledged he had lost the support of his MPs and promised an “orderly handover of power” to his successor.

Andy Burnham Starmer resignation

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.”

Starmer 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 September 1.

But the anointing of a new leader could come much sooner, with nominations closing on July 16.

Potential candidates have until then to amass the support of at least 81 Labour MPs.