Mahmood Tipped for Chancellor as Burnham Keeps the Cabinet Guessing
Mr Burnham is expected to begin naming his Cabinet only after entering Downing Street, and no appointment has been confirmed. The Home Secretary, Shabana Mahmood, is the reported frontrunner for Chancellor — a choice framed as reassuring to markets and a setback for the energy secretary, Ed Miliband, who is tipped instead for the Foreign Office. Rachel Reeves is expected to be replaced, with comebacks anticipated for Wes Streeting and Angela Rayner.
The battle for No 11 is the day’s defining sub-plot: whoever Mr Burnham installs next door signals his intent to his party and to the bond markets alike. Senior Labour figures expect Ms Mahmood, seen as being on the party’s right, to move to the Treasury amid fears that Mr Miliband would become a lightning rod for criticism. The deputy leader, Lucy Powell, is tipped for a senior role. Every post remains speculative until Mr Burnham is Prime Minister. Watch whether he hands a woman a Great Office of State again, and how sterling and gilts read his choice as London trades.