Wes Streeting has backed Andy Burnham to become Prime Minister as the former Manchester mayor formally announced his leadership bid. 

The former health secretary said Burnham “can win the fight of our lives against the forces of nationalism”. 

Streeting said he had spoken “at length” with Burnham and said the former Manchester mayor was “committed to building an inclusive party that draws on the best of our political traditions”. 

“We could spend the summer exaggerating small differences or we can roll up our sleeves and help him to deliver the change our party and our country needs”,

Burnham meanwhile called for an “orderly” process to take place as he announced his leadership bid. 

Burnham, who is now an MP after winning the Makerfield by-election, said Britons expect “stability, seriousness and a continued focus on the issues that matter most and that is what I will get”. 

“[Starmer]’s decision marks the beginning of a transition and it is important that this process is conducted in an orderly and responsible way. I will put myself forward as part of this process.”

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.”

Burnham’s Chancellor pick

Streeting’s decision to step out of the leadership race could mean that Burnham gets the keys to Number 10 unaposed – if no other candidate puts themselves forward. 

It will also fuel speculation over whether the former health secretary will be handed a senior Cabinet position if Burnham becomes Prime Minister, with Streeting mooted as a possible Chancellor. 

Streeting delivered a speech focused on “progressive capitalism” and called for fiscal policies to be costed. He also backed critical infrastructure projects to be fast-tracked through using parliament’s emergency powers while claiming Labour should not be ‘squeamish’ about competition and capitalism.

Several Labour MPs including the former transport secretary Louise Haigh, the influential minister Miatta Fahnbulleh and deputy party leader Lucy Powell were among those who backed Burnham’s bid to return to parliament, paving the way for him to become Prime Minister. These high profile Burnham supporters have been outspoken critics of economic policies led by Starmer’s government. 

Responding to Starmer’s resignation, the current Chancellor, Rachel Reeves, praised Starmer for making the UK economy “better protected from global instability”. 

“We have achieved a lot together to be proud of, and there is more to do. I am grateful for Keir’s leadership and the work he has done to build a stronger, more secure Britain.”

She did not comment directly on ongoing leadership and Cabinet minister speculation.