Rachel Reeves' allies are talking up her value to Andy Burnham as Labour gears up for a post-Starmer era.

The Chancellor's supporters have been stressing that the Greater Manchester Mayor will need someone 'the bond markets trust' if he succeeds in getting the keys to No10.

There are also warnings that putting Ed Miliband in charge of the Treasury would leave Labour with 'two white men' at the top of Government.

The prospect of the Net Zero Secretary in No11 has been causing anxiety in Labour circles. One veteran who believes Mr Miliband would get the nod accompanied their views with a Soviet flag.

The manoeuvring comes amid signs Cabinet ministers are starting a mad scramble for survival, with the expectation that Mr Burnham will become PM if he wins the Makerfield by-election next month. 

That is far from a given, with polls consistently showing Reform in pole position to take the seat.

Foreign Secretary Yvette Cooper, deputy PM David Lammy and Defence Secretary John Healey have all declared they will be campaigning in Makerfield.

Mr Burnham is seen as likely to give Cabinet berths to Angela Rayner and allies such as Louise Haigh, who co-chairs the influential soft-Left Tribune group of MPs. 

Ms Reeves notably backed Mr Burnham in his failed 2015 Labour leadership bid, and was widely tipped to be made his shadow chancellor if he had triumphed.

However, relations are said to have soured last year when they clashed over his suggestion the Government should pay less attention to bond markets. 

That is a view Mr Burnham has now recanted, with his team making clear this week that he is committed to Ms Reeves' fiscal rules.

Senior Labour figures still believe Ms Reeves is unlikely to hang on in No11 if Mr Burnham takes charge. 

'She's the only person who is more unpopular with the PLP than Keir,' one said.

But an ally of Ms Reeves insisted: 'He could definitely keep Rachel on. She has restored her standing in the PLP (Parliamentary Labour Party).

'A while ago that wouldn't have been enough change, but now it is possible.

'He's going to need someone the bond markets trust. The last thing he wants is to start with a 50 basis points hit on gilts.'

The ally said Mr Miliband was a 'dogmatic' Left-winger and would be a 'total disaster'.   

'You can't have two white men at the top of the party. He needs a woman chancellor, and who are his other options?'

One long-term Burnham fan said they could 'see the case' for Ms Reeves staying in place, although they added it 'feels unlikely'. 'But then who does he go for? It has to be someone markets trust.'

Markets have already been showing signs of nerves at the prospect of a fresh borrowing and spending spree. 

Ms Reeves, a Leeds MP, is seen as having put a 'chink of light' between her and Sir Keir in recent weeks, as his struggles deepened.

The Chancellor is making a flurry of announcements on the cost-of-living this week, in what looks to be an attempt to burnish her credentials.

She is due to speak at a conference alongside Mr Burnham this afternoon, instead of taking her regular spot next to Sir Keir at PMQs.

Mr Burnham was confirmed as the party's candidate in Makerfield yesterday, after the contest was triggered by ex-minister Josh Simons quitting to give him a path back to Westminster.

It is understood that the mayor was the only person shortlisted for selection by Labour's ruling National Executive Committee, bypassing a vote by the local party.

The decision sets up a contest between Mr Burnham and Reform UK's Robert Kenyon, a local plumber who contested the seat for the party in 2024.

Sir Keir has insisted he is 'focused on the job' of governing and would fight any challenge mounted to his leadership.