The BBC understands that Andy Burnham would likely replace Rachel Reeves as chancellor should he ascend to the premiership, instead offering her a senior but junior cabinet role.

A spokesperson for Burnham stressed that no final decisions have been taken.

The speculation arises as the former Greater Manchester mayor begins assembling a prospective Downing Street operation, on the assumption he secures the Labour leadership—a contest in which he is currently the only declared candidate.

Sir Keir Starmer announced his intention to stand down as prime minister shortly after Burnham’s victory in the Makerfield by-election paved the way for his return to Parliament.

The most immediate and consequential appointment facing Burnham is the choice of chancellor. While most Labour MPs anticipate Reeves will not remain at the Treasury, the Financial Times first reported—and BBC sources confirm—she is expected to be offered an alternative high-ranking portfolio.

“Andy really respects Rachel and I’m confident he’ll want her in his top team,” a close ally of Burnham told the BBC.

Meanwhile, James Purnell, a minister in Gordon Brown’s government from 2007 to 2009, is slated to serve as Burnham’s Downing Street chief of staff.

Should the new MP for Makerfield enter Number 10, defence spending will present an urgent policy challenge. Burnham and his advisers have reportedly been consulting with John Healey, who resigned as defence secretary earlier this month after warning that the government’s planned funding uplift fell “well short of what is required.”

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