Rachel Reeves issues 'more to do' message to Andy Burnham over Chancellor role

Unless another viable challenger appears, Mr Burnham will likely become Prime Minister on July 17 after nominations to become Labour leader close.

Sir Keir Starmer has already allowed the former Greater Manchester Mayor access talks with the civil service, a day after announcing he would stand down in the coming months.

Attention from businesses has turned towards who Mr Burnham will name as Chancellor in his Cabinet.

Ms Reeves is the current occupant of No11, and keeping her in post would reassure the financial markets.

Dan Coatsworth, head of markets for AJ Bell, said: “Burnham’s choice of Chancellor if he becomes prime minister could have a major impact on bond markets.

“Bond investors like boring and dull – they want someone who has a plan where the maths stacks up and they stick to it.”

Ms Reeves has indicated that she would like to stay on, saying in her statement paying tribute to Sir Keir that there was “more to do”.

However, it is understood that Mr Burnham is considering moving away from the Leeds West and Pudsey MP to indicate he wants to bring about change.

The current Energy Secretary Ed Miliband is one of Mr Burnham’s closest allies and was a Treasury advisor under Gordon Brown.

Mr Coatsworth said the former Labour leader would “bring considerable experience from prior senior political roles”.

Earlier in the week, Wes Streeting announced he was backing Andy Burnham, and has since become the bookies’ favourite to replace Ms Reeves.

However, a spokesperson for Mr Burnham denied that any discussions had taken place with the former health secretary.

“There has to be a change in culture away from negative briefings in Westminster,” they said.

“There has been no discussion of cabinet jobs with individuals.”