Rachel Reeves beats Lisa Nandy to become Labour's new shadow chancellor

Reeves, who was previously shadow chief secretary to the Treasury, will replace John McDonnell in the role

Nandy, who was shadow foreign secretary, was seen as the favourite to win the contest

Rachel Reeves has been elected as the Labour Party's new shadow chancellor, beating Lisa Nandy to the post.

Reeves, who was previously shadow chief secretary to the Treasury, will replace John McDonnell in the role.

Nandy, who was shadow foreign secretary, was seen as the favourite to win the contest.

However, Reeves won the support of Labour MPs and members, and was elected with a majority of 51.3% to 48.7%.

Reeves said she was "honoured" to be elected as shadow chancellor and that she would "work tirelessly to hold the government to account and to develop policies that will deliver a fairer, more prosperous future for all."

Nandy said she was "disappointed" not to have won the contest, but that she would continue to work with Reeves and the rest of the Labour Party to "hold the government to account and to fight for a better future for Britain."

Reeves' election as shadow chancellor is a significant moment for the Labour Party.

She is the first woman to hold the post since Harriet Harman in 2007.

Her election also marks a shift to the right for the Labour Party, as Reeves is seen as a more moderate figure than McDonnell.

It remains to be seen how Reeves will perform in the role, but her election is a sign that the Labour Party is changing.

The party is now under the leadership of Keir Starmer, who is seen as a more moderate figure than his predecessor Jeremy Corbyn.

Starmer has promised to unite the Labour Party and to make it electable again.

Reeves' election as shadow chancellor is a sign that Starmer is serious about his promise.

Reeves' priorities as shadow chancellor

As shadow chancellor, Reeves will be responsible for developing Labour's economic policies.

She has said that her priorities will include:

• Investing in public services
• Creating jobs
• Tackling the climate crisis
• Reducing inequality

Reeves has also said that she will work to ensure that the government's economic policies are fair and sustainable.

Reeves' challenges as shadow chancellor

Reeves will face a number of challenges in her role as shadow chancellor.

These include:

• The UK's economic recovery from the COVID-19 pandemic
• The cost of living crisis
• The climate crisis
• The war in Ukraine

Reeves will also need to work with Labour MPs and members to develop policies that are both popular and effective.

Reeves' potential impact on the Labour Party

Reeves' election as shadow chancellor could have a significant impact on the Labour Party.

She is a popular figure within the party, and her election could help to unite the party behind Starmer.

Reeves is also a competent politician, and she is likely to be an effective shadow chancellor.

Her election could help to improve the Labour Party's chances of winning the next general election.