Andy Burnham is expected to pick a new chancellor as he prepares to name his cabinet, and Shabana Mahmood is now the frontrunner for the role. Rachel Reeves appears likely to be moved out of the Treasury, making the choice the clearest early sign of how Burnham plans to use his new Labour leadership.
The chancellor is the most important role in government after the prime minister. Burnham has said he will stick by tight borrowing rules, so the appointment will shape who controls the Treasury and how quickly he can move on spending priorities.
Shabana Mahmood and Ed Miliband
Shabana Mahmood and Ed Miliband are the two names being widely discussed for the job. Mahmood, who sits on the right of the party, has gained a reputation as a tough home secretary, and most people now expect her to get the post. That would also let Burnham move her out of the Home Office.
Miliband is described as a leading figure on the soft left. The choice between him and Mahmood is being read as a test of how broad Burnham wants his cabinet to look compared with Sir Keir Starmer’s.
Rachel Reeves and the Treasury
Rachel Reeves could be removed from the Treasury altogether, and there is also a suggestion she could be moved to Defence secretary. In that version of events, she would have to help fill the £4.7bn black hole in the Defence Improvement Plan. Burnham’s backing of the MP for Makerfield in what was seen as a last-ditch attempt to keep her job did not stop the pressure on her position.
That pressure has grown as the contest over the next chancellor has intensified this week. Burnham received nominations from 379 of the 403 Labour MPs, was sworn in as an MP last month, and was confirmed on Friday as the new Labour leader.
Labour MPs and Friday
Neil Coyle chose Catherine West rather than back Burnham, while West had pulled back from mounting an unlikely leadership challenge against Sir Keir in May. Burnham’s cabinet is expected to follow the leadership vote with appointments that will show where power sits inside the Labour Party.
The clearest immediate question is whether Burnham will appoint Mahmood, and the balance of the cabinet suggests he is preparing to reward the people he trusts most with the biggest jobs. A Burnham cabinet that moves Reeves out and places Mahmood at the Treasury would be the first hard sign of that shift.
