Jones rules out leadership bid, sets strict criteria for Treasury chief

UK Chief Secretary to the Prime Minister Darren Jones has formally ruled out a bid for the Labour leadership, stating he received sufficient reassurance from Andy Burnham regarding the party’s economic plans. Speaking to Sky News, Jones indicated that bond markets should be ‘content’ with Burnham’s proposals, citing a commitment to fiscal rules. While acknowledging room for limited borrowing to support infrastructure and housing, Jones warned against excessive debt that could divert funds from public services to pay interest to hedge funds. He outlined strict criteria for the next Chancellor of the Exchequer, emphasising the need for a candidate who can reassure markets, trade unions, and the parliamentary Labour Party. Jones did not explicitly endorse Energy Secretary Ed Miliband, who is Burnham’s preferred choice, despite facing criticism from the right-wing press.

Jones spoke to Burnham on Monday and came away "satisfied" by the economic plans, despite being considered a fiscal hawk within the party. He acknowledged there is "room to borrow a little bit more" within current fiscal rules, but warned against "broad brush borrowing" which he argued would not deliver outcomes due to supply-side constraints such as a lack of builders, bricks, and grid capacity. He warned that excessive borrowing is "increasingly expensive" and would divert funds from public services, including doctors, nurses, police, and the armed forces, to pay debt interest, predominantly to American hedge funds.

Jones did not explicitly state whether he supports Ed Miliband as chancellor, instead setting out tests for the role. He argued that the chancellor must understand the Treasury, have a clear view on political economy, and enable the delivery of the prime minister’s priorities rather than controlling them. Jones noted that in many circumstances, the chancellor holds more power than the prime minister, making the relationship between the two offices critical. He emphasised that the next chancellor must be able to reassure markets, trade unions, and the parliamentary Labour Party.

The right-wing press, including the Mail, is currently pressuring Burnham by characterising Miliband as fiscally irresponsible, akin to a "far-left version of Liz Truss". This media campaign comes as internal debates intensify within the Labour Party regarding who will succeed Rachel Reeves at the Treasury. More than 40 progressive economists have previously issued an open letter to Unite union leader Sharon Graham, urging her to retract claims that Miliband would jeopardise employment if appointed chancellor.

Jones dismissed suggestions that he would intervene in the leadership contest despite being "flattered by the support from colleagues". He stressed that the route to building council houses and devolving more power must be in line with fiscal rules to maintain economic stability. "Borrowing isn’t free," Jones said, arguing that simply borrowing tens of billions of pounds would not work without addressing underlying supply constraints. He advocated for investing in new towns and mayoral development corporations that provide apprenticeship opportunities and support British business, rather than relying on broad spending measures.