Chancellor Rachel Reeves will be demoted from her current position in the Treasury if Andy Burnham succeeds Prime Minister Keir Starmer, according to reports.
It is understood Ms Reeves will be offered an alternative cabinet role if the former Greater Manchester Mayor gets the keys to Number 10 Downing Street.
Since Labour returned to power in July 2024, the Chancellor has come under fire over her fiscal policies, including the changes to inheritance tax (IHT) impacting farmers and the hike to National Insurance for employers.
Sources close to Mr Burnham's team told The Financial Times that Ms Reeves has been viewed as not being successful during her tenure at the Treasury.
Andy Burnham is understood to be planning a demotion for the Chancellor if he becomes Prime Minister
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Energy Secretary Ed Miliband, former Health Secretary Wes Streeting, and Home Secretary Shabana Mahmood have been named as potential successors to Ms Reeves.
Allies close to the Prime Minister have said that Sir Keir will not step down as an MP and will return to the backbenches of Parliament.
It is expected that Mr Burnham will unveil his picks for top cabinet roles in the near future, with his behind-the-scenes team to be confirmed later this week.
Among those rumoured to be taking top roles include Tom Whitney, who servred as the ex-mayor's policy adviser in Manchester.
Andy Burnham has returned to Westminster | GETTYLATEST DEVELOPMENTS
The Chancellor has faced criticism for over-taxing the private sector and making life harder for businesses | RACHEL REEVES / LINKEDIN GB News has contacted the Cabinet Office for comment.