Jones: Bond markets should be content with Burnham's economic plans

Darren Jones, the Chief Secretary to the Prime Minister, has announced he will not run for the Labour leadership, paving the way for Andy Burnham, who is seen as the frontrunner. In an interview with Sky News, Jones said he spoke to Burnham on Monday and was reassured that Burnham's economic plans align with fiscal rules.

Jones stated that bond markets can be content with a Burnham-led government if fiscal responsibility is maintained. He suggested it is possible to borrow a little more within the fiscal rules, as long as it leads to investment that stimulates economic output. Jones noted that Burnham is committed to the government's fiscal rules and that they discussed ideas for investment in areas like council house building.

Meanwhile, James Purnell, a lobbyist at Flint Global, has confirmed he will leave to become Burnham's chief of staff. In a note to staff, Purnell said reports of his departure were 'basically correct'. Jones declined to say whether Ed Miliband would be a good choice as chancellor, stating that the next chancellor must be able to reassure markets, trade unions, and the parliamentary Labour Party.

The developments come as Keir Starmer prepares for his final PMQs sessions before Burnham is expected to take over as prime minister on 17 July. The question of who will be the next chancellor remains open, though the BBC reports that Burnham does not plan to keep Rachel Reeves in the role.