Labour Chancellor Rachel Reeves has urged her party colleagues to adhere strictly to established fiscal rules amid mounting speculation over a potential leadership contest. Speaking at the Times CEO Summit in London on the eve of the Makerfield by-election, Reeves emphasized the importance of maintaining economic stability in line with the party’s manifesto commitments.

“We got elected on the promise to return stability to the economy, and anyone who wanted to deviate from that will not be fulfilling the manifesto commitments,” Reeves told business leaders. She made clear her intention to remain in her role as Chancellor, underscoring the current leadership's commitment to fiscal discipline.

The comments come as voters in Makerfield headed to the polls in a by-election seen by many as a bellwether for Labour’s future direction. Andy Burnham, the Greater Manchester Mayor, is widely regarded as a likely contender to challenge Sir Keir Starmer for the Labour leadership should he win the seat and return to Westminster.

Burnham, who sparked controversy at last year’s Labour conference by questioning the party’s approach to managing bond markets, has since sought to align himself with Reeves’s fiscal prudence. In a recent ITV interview, he acknowledged the need for a plan to reduce national debt but stressed that political stability was equally vital. “Beyond that, we need to change politics and take the turbulence out of British politics, because that is a cause of uncertainty that then has that impact in the markets,” Burnham said.

Reeves’s warning also serves as a message to potential leadership challengers ahead of what could be a significant reshuffling within Labour’s ranks. While Starmer has vowed to confront any contest to his leadership, there is ongoing speculation over whether a leadership change might prompt alterations within the Cabinet.

When asked what advice she would offer to any successor, Reeves stated unequivocally that her position remained secure: “There is no vacancy for my job. Keir is our Prime Minister, I am his Chancellor.”

The outcome of the Makerfield by-election is expected to influence the party’s internal dynamics in the coming weeks, shaping Labour’s economic and political strategy ahead of the next general election.