Andy Burnham, the likely next leader of the Labour Party, is expected to remove Rachel Reeves from her position as chancellor, offering her an alternative cabinet role, according to individuals familiar with his plans. Reeves, who has held the chancellorship since July 2024, is reported to have been unsuccessful in retaining the post should Burnham assume power.

Burnham, newly elected as the Member of Parliament for Makerfield, is in the process of assembling his cabinet team, with the decision over the chancellor position—his most significant appointment—anticipated as the first major announcement. Potential candidates rumored for the Treasury role include Ed Miliband, energy secretary; Wes Streeting, former health secretary; Yvette Cooper, foreign secretary; and Shabana Mahmood, home secretary.

A source close to Reeves noted her willingness to serve in a Labour government, emphasizing her primary interest in contributing regardless of her official role.

Meanwhile, Sir Keir Starmer is expected to step down from his leadership role but plans to remain an MP, sources say.

Prior to revealing his senior ministerial appointments, Burnham is focusing on confirming his key advisory and support teams. Tom Whitney, a longtime aide who worked with Burnham during his tenure as shadow health secretary and subsequently as a policy adviser in Manchester, is likely to join his inner circle. Whitney currently serves as a special adviser to transport secretary Heidi Alexander and previously advised Liverpool metro mayor Steve Rotheram, a close associate of Burnham.

Whitney played a critical role in last year’s negotiations surrounding Northern Powerhouse Rail, helping to unify various parties and reach an agreement.

Caroline Simpson, chief executive of the Greater Manchester Combined Authority (GMCA), is also expected to secure a position within Burnham’s team though she is unlikely to be appointed chief of staff. Senior Manchester officials praise Simpson for her dynamism and track record in delivering economic regeneration, notably her involvement in Stockport’s turnaround, an achievement Burnham frequently highlights.

Another trusted GMCA figure, John Wrathmell, director of strategy, is anticipated to have a prominent role given his credited influence on Greater Manchester’s economic strategy and Burnham’s “Manchesterism” agenda developed last year.

In communications, Burnham’s current head of communications, Grace Pritchard, is anticipated to transition with him to Downing Street, alongside Donjeta Miftari, who previously left government in 2024 amid allegations concerning the work environment in Starmer’s No. 10 office.

Abby Tomlinson, an activist known for founding the "Milifandom" movement during Ed Miliband’s leadership, remains close to Burnham and was observed traveling with him on a recent train journey from Manchester to London.

Josh Simons, the Makerfield MP who stepped aside to facilitate Burnham’s return to Parliament, is reportedly poised to take on a senior policy role within the new administration.