Starmer ally Jones backs Burnham after being reassured on economic plans

LONDON, June 24 (Reuters) - Darren Jones, an ally of outgoing Prime Minister Keir Starmer, endorsed Andy Burnham to take over on Wednesday after saying he had been reassured by the former mayor's economic plans, including ways he could possibly borrow more.

Jones, chief secretary to Starmer, said he had discussed economic policy with Burnham after he alarmed investors last year by saying the country had to stop being in "hock to the bond markets", comments he later said had been ​misrepresented.

Asked by Sky News if Burnham would borrow more, Jones said markets, trade unions and the governing Labour Party would accept targeted additional borrowing if backed by a credible plan to stimulate the economy.

Jones said there was "room to borrow a little bit more" but added that Burnham had not outlined specific spending plans in their talks.

"We talked ... a lot about what he (Burnham) was thinking on the economy and what my thoughts were on that, and some of the potential ways forward for the new government," he said.

Starmer said on Monday he would step down following months of pressure over the party's poor poll ratings and setbacks in local elections, triggering a leadership contest to start on July 9.

Burnham is the only candidate to put his name forward and the party expects a coronation, meaning he could become prime minister by the middle of July. If appointed, he will be Britain's seventh leader in 10 years.

"Andy Burnham is going to be the next prime minister. And if there was a contest of Labour Party members, he would win," Jones said.

(Reporting by Muvija M; Editing by Kate Holton)