Andy Burnham is expected to name a cabinet, and the chancellor choice will be the clearest signal of how far his cabinet will move from Sir Keir Starmer’s government. Rachel Reeves is expected to leave the Treasury, while Shabana Mahmood has emerged as the frontrunner for the job.
Burnham was confirmed as the new Labour leader on Friday after receiving nominations from 379 of the 403 Labour MPs. That gives him the numbers to shape the first cabinet quickly, with the Treasury post carrying the most weight because he has already said he will stick by tight borrowing rules.
Shabana Mahmood and Ed Miliband
Shabana Mahmood and Ed Miliband are both being discussed as prospective chancellors, but most people now expect Mahmood to get the post. She is on the right of the party and has gained a reputation as a tough home secretary, which makes her the likeliest choice for Burnham if he wants a Treasury figure who can reassure Labour MPs while still changing course.
Shabana Mahmood tops Andy Burnham Cabinet race for chancellor has become the central reading of the contest, because her appointment would also let Burnham move her out of the Home Office and adjust her immigration policy. That would make the first cabinet more than a personnel change: it would show where he intends to shift power inside government.
Rachel Reeves and the Treasury
Reeves is expected to be ousted from the Treasury and may leave government altogether, though she could land the defence secretary job instead. That option matters because the Defence Improvement Plan has a £4.7bn black hole, and a move there would reshape the next phase of spending choices without keeping her at the centre of economic policy.
Neil Coyle selected Catherine West, who had pulled back from mounting an unlikely leadership challenge against Sir Keir in May, showing how quickly Burnham’s side has begun assembling support. Last month, Burnham was sworn in as an MP, and his next cabinet picks will show whether he is using those numbers to broaden the range of views inside Labour or to concentrate them around a small group of trusted figures.
Professor Sir Anthony Finkelstein appointed for Cabinet Office review and Brooke Shields Proves Cream Cabinets Still Work in 2026 are separate pieces, but the political choice now is simpler: whether Burnham puts Mahmood, Miliband or another ally into the Treasury post. That appointment is the first real test of how much his cabinet will depart from Sir Keir Starmer’s line.
