Burnham latest: Prime minister hopeful one step closer to No 10 after Starmer ally Darren Jones rules himself out of leadership race

• 46 per cent of Britons would prefer Burnham to face a Labour leadership contest, while only 23 per cent would prefer he became prime minister unopposed
• 18 per cent think that Burnham would make a great or good prime minister, while 20 per cent expect that he would be average, and 26 per cent think he would be poor or terrible
• One in five (21 per cent) say that they now feel more optimistic about the future direction of the country, although they are balanced by the 24 per cent who feel more pessimistic

Savers face a new 22 per cent levy on interest earned from cash held within stocks and shares ISAs.

The measure will be designed to prevent individuals from circumventing forthcoming restrictions on cash ISA allowances.

This follows an announcement at the Autumn Budget 2025 that, from April 2027, the annual cash ISA allowance will be cut to £12,000.

In contrast, the limit for stocks and shares and innovative finance ISAs will remain at £20,000, reflecting broader efforts to foster an investment culture.

The cash ISA allowance for those aged 65 and over will also stay at £20,000.

Bev Craig has been the leader of Manchester city council since December 2021 and a member of the Greater Manchester Combined Authority, which was led by Andy Burnham.

Deputy prime minister David Lammy is to unveil respected former Tory cabinet minister Amber Rudd to review the prison system.

With Labour still trying to tackle an overcrowding crisis in prisons in England and Wales despite a controversial early release scheme, Mr Lammy, who is also the justice secretary, has turned to the former Tory home secretary to find solutions.

A source told The Independent that the review will look at how the prison system can keep the public safe but also modernise prisons to deal with new threats such as drone deliveries “which have become very sophisticated”.

Ms Rudd will also be asked to explore how to cut crime through training and making ex-offenders better connected to modern employment.

Talks are continuing about who might serve in an Andy Burnham cabinet, and who might advise the former Greater Manchester mayor behind the scenes.

Senior Labour figures – including former transport secretary Louise Haigh, energy secretary Ed Miliband, home secretary Shabana Mahmood, and former health secretary Wes Streeting – have all been tipped for top jobs in a government led by Mr Burnham.

James Purnell, a former Labour cabinet minister who served alongside Mr Burnham in the Blair government, is meanwhile reportedly being sized up as a chief of staff, The Times reported.

Elsewhere, crossbench peer Jim O’Neill – who has been advising Mr Burnham – told The Guardian he wanted to see a new, independent body set up so that extra money could be spent on infrastructure while remaining within Labour’s fiscal rules.

The body could follow the model of the Office for Budget Responsibility, he said, allowing for billions more to be spent on boosting big transport and public works projects.

Sir Keir Starmer has held face-to-face talks with Andy Burnham, his likely successor, pledging a “smooth transition” of power following his resignation.

The prime minister met the frontrunner to replace him in Downing Street for an hour-long “off-site” discussion, the first since the former Greater Manchester mayor’s by-election victory, as reported by The Times.

To prepare for power, Mr Burnham will now begin receiving government briefings, with Sir Keir having authorised civil service access talks for “prospective candidates” for the Labour leadership.

The PM also told his cabinet on Tuesday morning that he sought an “orderly transition”, aiming to make the process “as easy as possible” for his successor.

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Senior minister Darren Jones has urged Andy Burnham to set out more of his economic policies after ruling himself out of the race for the Labour leadership.

In an interview with Sky News on Wednesday morning, chancellor of the Duchy of Lancaster Mr Jones said he would have had the backing of enough MPs to take on the former Greater Manchester mayor, but suggested a contest would not give the eventual winner enough time to prepare a budget for the autumn.

Mr Jones said he had had a “reassuring” conversation with Mr Burnham about the Makerfield MP’s economic policy before making his decision.

He said Mr Burnham should set out more details for the “upwards of 100 MPs” who were concerned about his plans or were “feeling pretty depressed” by Sir Keir Starmer’s resignation.

Asked about the possibility of Mr Burnham increasing borrowing to fund his spending priorities, Mr Jones said there was “room to borrow a little bit more” within the existing fiscal rules.

But he stressed that there were other routes to achieve the former mayor’s objectives “without broad brush borrowing and spending”.

A Labour minister has said she was “really sad to see Keir Starmer resign”, insisting that there has been “incredible progress” under his Labour government.

Speaking to Sky News, victims minister Catherine Atkinson added: “We have delivered so much of our manifesto, and the decisions that [Sir Keir] has taken with Rachel Reeves as chancellor has meant that we have seen – we saw inflation coming down, we saw six interest rate cuts.

“That certainty allowed hundreds of billions of pounds of investment into our country, and it meant that we were able to do the investment we need in public services, and bringing our NHS waiting list down.”

Asked whether she would have liked to see Sir Keir continue in post, she said: “My concern had been that we don’t want to, when we were getting into our stride on delivery, to trip ourselves up.

“But I’m really pleased that he has continued to put the country first in ensuring that we do have that smooth transition, and absolutely going forward, the hope that we have seen Andy Burnham be able to create and instil in people is the kind of hope over division that I do want to see in leadership going before a general election.”

A drawn-out Labour leadership contest would not be “in the best interests of the country”, Labour minister Catherine Atkinson said.

Asked whether she wanted to see a contest or would she be happy for there to be just one candidate, the victims minister told Sky News: “I want to see us focused on delivery.

“I want to see this government continuing to implement the manifesto, and to have a long-drawn-out leadership contest, I don’t think is in the best interests of the country.

“So, I would like this to be as quick and as smooth as possible.”