The next Prime Minister is going to have to make some big decisions and they won’t come much bigger than choosing who to appoint as Chancellor. Frontrunner Andy Burnham can be under no illusions regarding the economic challenges Britain faces.

Current Chancellor Rachel Reeves has backed Burnham to become the next leader of the Labour party despite rumours that he could be set to replace her at Number 11.

Reeves obviously feels she still has unfinished business as Chancellor, talking up fiscal devolution. This newspaper is all for fiscal devolution. Powers and pounds are better in the hands of local leaders than mandarins in Whitehall.

On paper a Burnham and Reeves partnership could prove to be formidable for the North. Burnham’s stock across Greater Manchester is high, as evidenced by the by-election result in Makerfield that has returned him to Westminster, and Reeves has been an MP for Leeds West for the past 16 years.

Chancellor Rachel Reeves speaking at the British Chambers of Commerce Global Annual Conference. PIC: Jordan Pettitt/PA Wire

placeholder image — Chancellor Rachel Reeves speaking at the British Chambers of Commerce Global Annual Conference. PIC: Jordan Pettitt/PA Wire

Both of them should understand the challenges that the region faces better than anyone else.

However, it is clear that Reeves had been identified as a problem that led to Sir Keir Starmer losing the confidence of his party.

Former defence secretary John Healey in his scathing resignation letter said the PM has “been unable, and the Treasury has been unwilling, to commit the resources that the nation needs to defend the country at this time of rising threats.”

Given Healey’s chastising statement, it would be understandable if Burnham does opt for a change at Number 11.