Reeves urges Burnham to stay in post as leadership rumours swirl ahead of Labour conference

Chancellor of the Exchequer Rachel Reeves urged Andy Burnham to stay in his current role amid swirling rumours of a leadership challenge to Sir Keir Starmer. Reeves, speaking ahead of Labour’s annual conference in Liverpool, described Burnham as a “great mayor” who is delivering for Manchester and stressed that Starmer won the general election last year and should continue in his role while Reeves focuses on her duties as chancellor. The remarks were framed as a rebuke to leadership speculation that has unsettled the party as it prepares for a march into a high-stakes gathering. Reeves’ comments stood in contrast to Burnham’s public stance that his city’s voters should have confidence in him continuing to lead while the country faces a range of domestic and economic pressures. Reeves added that she intended to “get on with my job as well, being Chancellor of the Exchequer,” signaling a focus on governance rather than internal leadership debates.

Burnham, for his part, has suggested that some Labour MPs want him to mount a challenge against Starmer, a line that intensified headlines this week and fed into an ongoing narrative of party infighting as it braces for a turbulent conference. Starmer’s team has publicly urged unity and resilience, arguing that the party must present an alternative to the policies of Reform UK as the national conversation shifts to issues of immigration, benefits, and public services. Labour chairwoman Anna Turley acknowledged that the party had faced a challenging fortnight, though she reiterated the importance of keeping the focus on delivering for voters.

As Labour conference attendees begin to arrive in Liverpool, the party faces a slate of questions about its direction. A Savanta poll conducted for The House magazine found that 28 percent of voters believed Burnham would be a better prime minister than Starmer, a figure that underlines the balancing act Labour faces between demonstrating leadership capability and preserving party unity. But the same survey highlighted that a broader segment of MPs and party members remains frustrated by what some describe as frequent leadership speculation and the perceived undermining of Starmer’s stewardship. The tension comes as Labour continues to attempt to present itself as a credible alternative to a Reform UK project that, according to recent polling, could erode Labour’s electoral ground.

Starmer has argued that Reform UK’s platform would “tear our country apart,” framing the conference as an opportunity to offer a coherent national renewal project rather than a politics of division. He arrived in Liverpool with his wife, Lady Victoria, and described the gathering as a chance to showcase Labour’s policy alternative to what he calls the “toxic divide and decline” he associates with Reform. He called Reform’s position on immigration and other issues one of the most shocking elements of their platform and urged party supporters to unite behind a constructive agenda.

Separately, the conference is set to re-open debate over the two-child benefit cap, a policy area that has drawn sharp internal criticism from backbench MPs and unions. Seven Labour MPs had the whip suspended in July last year after backing an SNP motion calling for an end to the cap, with four of them — Ian Byrne, Richard Burgon, Imran Hussein and Rebecca Long-Bailey — later having the whip reinstated. It is understood suspensions for John McDonnell and Apsana Begum were resolved recently after discussions with the chief whip, Jonathan Reynolds, and Zarah Sultana subsequently resigned her Labour membership to co-found a new left-wing party with former leader Jeremy Corbyn. Liverpool MPs have been among those who wrote to the prime minister ahead of the conference urging that the cap be reassessed as a driver of child poverty in Britain.

Within the deputy leadership contest, opponents of the cap have been vocal, with Lucy Powell, a former Commons leader, among those who signalled opposition to its continuation. Powell’s stance has entrenched a broader debate about welfare policy that could raise tensions at the gathering as Labour seeks to reconcile competing voices within its left and centre-left wings. The party has also signalled a renewed focus on benefits policy, with some ministers suggesting that the current benefits bill is unsustainable in the long run, a stance that could foreshadow future policy moves.

Beyond welfare and leadership questions, the conference will examine Labour’s digital policy ambitions, including a plan for a new digital ID system announced by Starmer’s team. The policy will face scrutiny as senior party figures outline a broader strategy for public services and identity verification in a digital economy. In addition, Labour officials are expected to outline details of a new wave of “New Towns” initiatives at the event, signaling a long-term plan to address housing and regional development that could shape the party’s economic narrative for years to come.

The party’s leadership contest remains unresolved in the public eye, with Reeves positioning herself as a steady, policy-focused chancellor while Burnham’s supporters insist he could offer a different leadership style rooted in regional governance. The conference’s outcome may hinge on how effectively Labour can balance competitive aspirations with a demonstrable record of governance as it confronts a political environment dominated by opposition voices that argue the country is at a crossroads on immigration, welfare reform, and national renewal. The next phase of Labour’s discourse at Liverpool is likely to center on presenting a coherent contrast with Reform UK while reassuring voters that the party can deliver unity, stability, and tangible improvements to public services.