Shabana Mahmood has emerged as the frontrunner to become Andy Burnham's chancellor after a fierce briefing war over the prospect of Ed Miliband being appointed to the powerful role. This was reported by Qazaqyia.kz citing The Guardian.
Senior Labour figures with knowledge of Burnham's thinking told the Guardian they expected the home secretary to be moved to the Treasury amid concerns that Miliband would become a target for criticism of the government. However, sources in Burnham's team continued to insist that no final decision had been made, adding that his cabinet would be appointed only after he enters No 10 on Monday. The prime minister-in-waiting was out of Westminster on Wednesday for a family event.
The row over who takes over from Rachel Reeves as chancellor has divided Burnham's allies for weeks. Supporters of Miliband argue he is the only candidate who could challenge Treasury orthodoxy while sharing the next prime minister's vision for the UK economy. But with big business sceptical and several of the largest unions opposed to the move, the energy secretary's critics within the party have said they believed they had been successful in preventing the appointment. Some MPs had also warned that giving the second most powerful job in government to the politician who led Labour to a general election defeat in 2015 could prove a risky choice with the electorate.
Sources told the Guardian that Louise Haigh, one of Burnham's closest allies, had been having qualms about Miliband's appointment. The senior figures with knowledge of Burnham's decisions suggested Miliband would be moved to the Foreign Office instead, potentially with the additional responsibility of first secretary of state. His older brother, David Miliband, had also been tipped for the role. They suggested Wes Streeting, the former health secretary who quit over Keir Starmer's leadership, could take over from Mahmood as home secretary.
Burnham's team insisted decisions over the makeup of the cabinet were mostly speculation, adding that he was keeping it "very tight", with only Haigh and James Purnell, his chief of staff, thought to be in the loop. The pound rallied and UK government borrowing costs fell slightly on Wednesday after reports that Mahmood was the favourite to enter No 11. City investors had expressed unease over Miliband, fearing the installation of one of Labour's most ideologically driven senior figures would have led to a radical shift in economic policy funded by higher levels of government borrowing.
In contrast, Mahmood has little record of taking strong views on economic issues, but was regarded in the City as a more centrist option given her hardline stance on immigration. She also has a reputation in Westminster for getting to grips with tough departments and standing up to the civil service when needed. Labour insiders suggested the home secretary, who served as a shadow Treasury minister under Miliband when he was Labour leader, was further to the left on economic issues than she was on social ones, which could make her more aligned with Burnham on areas such as fiscal devolution and bringing utilities under public control.
Mahmood is understood to have spoken to Burnham in recent days and discussed wider political strategy beyond the Home Office, including the economy, but her allies insisted she had not been told she was going to the Treasury. Mahmood's first big task, if she is confirmed as chancellor on Monday, would be to draw up an emergency cost of living package. This could include targeted support for energy bills, a rent freeze and a cap on bus fares. She would then start work on an autumn budget, with Burnham telling the footballer-turned-podcaster Gary Lineker on Wednesday that he may "ask for a little bit more" in tax as he refused to rule out imposing a wealth tax. "I do believe we need a greater sense of fairness and people feeling that things are being done in the right way and a fair way," he said. "But at the same time, you know, I don't want to be perceived as somebody who's coming in with grudges and agendas and going to just immediately find or demonise one group or create a new way of dividing people." However, he would not rule out making such a move in the future, he said, adding: "At some point that might be having to ask for a little more. But, you know, those decisions are"