Andy Burnham could still face hurdles in his path to No 10 with two potential rivals for the Labour leadership considering their next moves.
The new Makerfield MP, who only returned to the Commons on Monday, could be in Downing Street within weeks if a challenger does not emerge.
Cabinet minister Darren Jones and former armed forces minister Al Carns are being considered as potential candidates by Labour MPs wary about installing Burnham in No 10 without a contest.
Jones, chief secretary to the British prime minister and a key ally of Keir Starmer, is one potential candidate with support from those loyal to the outgoing Labour leader.
Sources close to Jones said he was not currently minded to run in a contest but that he would want assurances on Burnham’s approach to economic policy, amid concerns among some of potential unease in the markets.
Burnham is set to make a major speech next week to set out key aspects of his economic policy, including confirmation he will stick to the current Chancellor Rachel Reeves’ rules for managing the public finances.
The second potential rival to Burnham is former Royal Marines officer Carns, who is making up his mind whether to launch a leadership campaign.
He suggested on ITV’s Peston he was considering what to do before nominations for the Labour leadership open on July 9th.
“I’m not ready to make a decision on this in any way shape or form,” he said.
“What I would say is we need to move from the politics which talk through the tactics and actually think about the strategy and what I’m really looking for are big objective outcomes that we want to get to in 2029 and 2034-35”.
He said “we need to have a clear and concise discussion about what this country wants to be at the next general election and the general election after that”.
Burnham will begin to set out his policy platform, pledging economic growth and a commitment to Labour’s existing fiscal rules in a speech next week.
Talks are also said to be taking place about who will sit in his Cabinet, with Energy Secretary Ed Miliband and Home Secretary Shabana Mahmood both tipped as potential candidates to replace Reeves as chancellor.
But Burnham’s allies said no jobs had been given and no deals had been made as of Monday evening.
Reeves’ successor would be bound by the rules she set, which aim to restrict borrowing and pay for day-to-day spending out of tax revenues by the end of the decade.
Burnham knows he has to reassure the City of London about his economic plans, having previously caused alarm by saying “we’ve got to get beyond this thing of being in hock to the bond markets”.
If Burnham is the only candidate to receive the support needed to stand in the contest for the vacant Labour leadership, he could become prime minister as early as July 17th.
Starmer announced he would be standing down in an emotional statement outside No 10 on Monday, promising an “orderly handover of power” to his successor.
Defending his record, he pledged to give the next leader “my full and unequivocal support, knowing that they will inherit a Britain that is far stronger and fairer than the one I inherited two years ago”.
Starmer said he would ask Labour’s ruling National Executive Committee (NEC) to set out a timetable that would see a new leader in place by the time Parliament returns from its summer recess on September 1st if there is a contest.
But Burnham could be the only candidate when nominations close on July 16th.
Potential candidates have until then to amass the support of at least 81 Labour MPs.
On Monday evening, Starmer and his wife Victoria Starmer hosted No 10 staff for drinks in the No 10 garden, where they thanked those present for the support they had given.
Victoria Starmer told them: “I just wanted to say thank you from me.
“I obviously love Keir and support him as much as I can, but there’s only so much I could do, and it’s you guys who gave that support day in, day out, and I am personally really grateful for that. So, thank you all.”
Burnham praised Starmer’s “huge service to our country” but said his resignation “marks the beginning of a transition”.
He said: “The Labour movement has always been at its strongest when it looks forward with confidence and purpose.
“This is what we will do from here and we will make sure this transition is a positive process of renewal for our party and our country.”
