Labour’s internal rift deepens as Reeves hits back at Burnham’s economic stance, fuelling speculation of a brewing leadership challenge.
In a stark warning that sent ripples through the Labour Party, Shadow Chancellor Rachel Reeves has accused Andy Burnham of echoing the failed approach of Liz Truss, just as rumours swirl around his future ambitions within the party.
Rachel Reeves warns Andy Burnham
Speaking ahead of the Labour Party Conference in Liverpool, Reeves didn’t mince words as she criticised the Greater Manchester Mayor’s economic rhetoric.
The clash adds a new layer of tension to an already fractious atmosphere among Labour’s top ranks.
“If he’s saying… anybody that says you can just borrow more, I do think that risks going the way of Liz Truss,” Reeves told LBC.
The comparison isn’t just scathing, it’s symbolic. Liz Truss remains a key target for Labour following her disastrous tenure as Prime Minister, which saw market turmoil and soaring borrowing costs.
By aligning Burnham with Truss, Reeves signals a deeper ideological divide within the party, one that could have long-term consequences.
Burnham in the Crosshairs
Rachel Reeves made her stance crystal clear: “Already one pound in every 10 the government spends is on financing the debt that was racked up by the previous Conservative government.
There’s nothing progressive, nothing Labour about that. I want to bring that debt down. I want to bring those borrowing costs down.”
Her remarks come just days after Burnham gave multiple high-profile interviews, where he appeared to leave the door open to a return to Westminster, prompting speculation of a leadership challenge to Sir Keir Starmer.
Reeves’ intervention appears strategically timed. She didn’t hold back when she emphasised the need for fiscal responsibility within Labour’s vision for governance.
“They need to be able to say no to good causes because they’ve got to make sure the numbers add up. And with me as chancellor, they always will.”
Brewing Battle in Liverpool
The annual party conference, meant to be a show of unity and vision, is now overshadowed by internal strife. Burnham has publicly expressed doubts about Labour’s current trajectory under Sir Keir, warning on Sunday that the party is in “peril”.
“I would say those out there making calls for simplistic statements of loyalty… are underestimating some of the peril that the party is in in those elections next year.”
He stopped short of pledging full support to Starmer, an omission that has only added fuel to the fire.
Behind closed doors, the question many Labour insiders are now asking is: could Starmer be pushed out if Labour underperforms in next May’s local elections?
Starmer Replies
Sir Keir didn’t stay silent either. While refusing to be drawn into direct personal attacks, he subtly echoed Reeves’ warning by reminding voters and Burnham of the economic chaos under Liz Truss.
“I’m not going to get drawn into commenting on the personal ambitions of the mayor, but I do want to be really clear about our fiscal rules because economic stability is the foundation stone of this government.
It was three years ago this week that we had the Liz Truss experiment, where she abandoned fiscal rules, in her case for tax cuts, and the result was a disaster for working people.”
This isn’t just a political spat it’s a revealing moment for Labour’s future direction.
- Rachel Reeves is drawing a red line: no room for economic adventurism, even from within the party.
- Burnham is positioning himself as a figure with national appeal, unafraid to challenge the status quo.
- Sir Keir’s leadership could hinge on next year’s local election results.
While Starmer tries to project calm leadership, the real battle for Labour’s soul may have just begun—inside his own party. As Labour eyes Downing Street, its internal divisions may yet prove more defining than any Tory opposition.
