Mahmood Favourite for Chancellor as Burnham Finalises His Team
The Home Secretary, Shabana Mahmood, has become the frontrunner to replace Rachel Reeves as Chancellor when Andy Burnham names his Cabinet on Monday, after his inner circle objected to the early favourite, Ed Miliband, now tipped for the Foreign Office. Seen as being on Labour’s right and able to reassure markets, Ms Mahmood has no prior economic brief. Mr Burnham insists no final decision has been made.
The choice of Chancellor is read as the defining signal of Mr Burnham’s intent, to Labour MPs and the bond markets alike, with the ten-year gilt yield near 4.97 per cent. Ms Reeves, the country’s first woman Chancellor, has lobbied to stay but is expected to be moved, with Yvette Cooper and Wes Streeting also in the frame. Mr Burnham has said it would be “somewhat premature” to confirm names and would “cause complete chaos” before he is in post. Left-wing MPs are unhappy at Ms Mahmood’s likely elevation from the party’s right. Watch Monday for the full Cabinet, and whether he governs from a ‘No 10 North’ in Manchester.