Key facts
- Ed Miliband's aspirations for the Chancellor position are reportedly being opposed by his peers.
- Shabana Mahmood is now seen as the leading candidate for the Chancellor role.
- Yvette Cooper, a former chief secretary to the Treasury, is also reportedly under consideration.
- The developments occur just days before Andy Burnham is set to assume the role of Prime Minister.
- Ed Miliband was previously considered a frontrunner for the Chancellor position.
Opponents of Ed Miliband believe they have successfully thwarted his ambition to become Chancellor, according to reports. This internal division within Andy Burnham's camp emerges just days before Burnham is scheduled to take office as Prime Minister.
While Burnham has remained tight-lipped about his Cabinet appointments, Miliband, a close ally, was widely seen as the leading candidate for the Treasury role. However, Labour whips have informed MPs that Shabana Mahmood, the current Home Secretary, is expected to be appointed Chancellor, with Miliband potentially offered the position of Foreign Secretary, the Financial Times reported.
The Financial Times further indicated that Mahmood is best positioned for the Chancellor role. Miliband was reportedly the first Cabinet minister to signal to Sir Keir Starmer that it was time to step down. He has played a significant role in shaping the economic strategy for Burnham's government.
The former Labour leader is a prominent figure in the party. Reports suggest he previously declined a proposed move to become Housing Secretary during Starmer's reshuffle in September.
With Burnham set to deliver his first speech as Prime Minister from outside Number 10 Downing Street in five days, the selection of his most critical Cabinet appointee remains uncertain. Although Shabana Mahmood is the current frontrunner, numerous reports suggest she is keen to remain as Home Secretary. Meanwhile, the i Paper has reported that Yvette Cooper is now being considered for the Chancellor position. Cooper previously served as Chief Secretary to the Treasury under Gordon Brown, taking over the role from Andy Burnham in 2008.
Rachel Reeves, Starmer's Chancellor, had previously cautioned that the incoming government must maintain strict fiscal credibility and stability in her final Mansion House speech. She stated that a strong economy "requires choices" and highlighted her legacy of closer ties with the EU and the City of London.
The individual appointed to the Treasury role will be the eighth Chancellor in a decade, marking an unprecedented period of turnover at the top of the Treasury.