Reeves Faces the Axe as Burnham Lines Up a New Chancellor
Rachel Reeves is expected to leave the Treasury when Mr Burnham names his government on Monday, with the Home Secretary, Shabana Mahmood, the reported frontrunner to become Chancellor. The energy secretary, Ed Miliband, once tipped for the role, is instead expected to move to the Foreign Office. Mr Burnham’s team insists no final decisions have been taken and that the full cabinet will be appointed only after he enters Downing Street.
The choice of Chancellor is Mr Burnham’s most consequential appointment, setting the fiscal tone for a government inheriting borrowing running well above the official forecasts. Ms Mahmood’s rumoured move to the Treasury has reportedly steadied nervous markets, while sidelining Mr Miliband is read as an effort to deny business a target over his energy stance. Ms Reeves, who backed Sir Keir through the leadership crisis and lobbied to keep her post, would be the most senior casualty of the transition. A cautious Chancellor serving an interventionist leader is a study in tension the Budget will test. Watch whether the appointment is confirmed on Monday and how gilts react when Westminster reopens.