Shabana Mahmood set to become Andy Burnham’s chancellor
Shabana Mahmood is widely expected to be named as Andy Burnham’s chancellor after the prime-minister-in-waiting’s inner circle objected to his original choice, Ed Miliband, reports BritPanorama.
Mahmood, currently the home secretary, has impressed many with her handling of the ongoing immigration crisis, positioning her as a figure capable of reassuring markets when the new government takes over on Monday. Following reports from The Times naming her as a frontrunner on Wednesday, the pound rose from $1.34 to $1.35.
The selection of a chancellor is regarded as pivotal for Burnham, who recently stated on Andrew Marr’s LBC show that he had yet to finalize his decision on the position. Mahmood’s endorsement by former prime minister Sir Tony Blair further solidifies her candidacy. Observers see her as more aligned with the party’s right wing compared to Miliband, which may help maintain market confidence.
Sources indicated that Mahmood is firmly in the running for the position, suggesting that recent dynamics could lead to a different approach from Burnham during his tenure. “Shabana is in the driving seat for the job. It won’t be Ed now,” one insider reported, highlighting the potential shift in strategy that Burnham plans to implement.
Miliband’s previous role as party leader reportedly created divisions within Burnham’s team, particularly concerning his recent decisions, such as dropping opposition to new drilling for oil and gas in the North Sea. Concerns have also been raised about his historic failure to connect with voters during the 2015 election.
Other contenders for the chancellor position included former health secretary Wes Streeting and outgoing chancellor of the Duchy of Lancaster Darren Jones. Streeting was initially deemed too divisive, while welfare secretary Pat McFadden was perceived as too supportive of welfare cuts, which raised red flags following the publication of texts involving the disgraced Labour peer Peter Mandelson.
Burnham hinted at a shift in how government economic policy will be managed, with an inclination towards more control from Downing Street and the Cabinet Office rather than the Treasury. In an interview with Gary Lineker, Burnham suggested the consideration of a wealth tax, indicating a commitment to examining the country’s financial landscape thoroughly before making any definitive moves.
While it is confirmed that former transport secretary Louise Haigh will run the Cabinet Office, there remains uncertainty around the overall composition of Burnham’s top team, which is expected to be finalized on Monday.
A senior minister acknowledged the chaos surrounding the imminent government reshuffle, stating, “This has been such a spectacular coup that nobody has a clue what’s happening. Let’s hope Andy and his team know what they are doing.”
Mahmood’s spokesperson directed inquiries to Burnham’s office, while Shadow Chancellor Sir Mel Stride criticized speculation regarding new taxes, warning of adverse effects on investment and economic growth. Stride argued that such financial uncertainties could deter wealth creators from remaining in the UK, contending that Labour consistently calls for more taxes compared to Conservative strategies aimed at fostering economic strength.
