Shabana Mahmood expected to be named as Andy Burnham’s chancellor

Shabana Mahmood’s appointment as Andy Burnham’s chancellor is widely expected after the prime minister’s inner circle contested her first choice, Ed Miliband. Independent he understands.

The home secretary has impressed many with his decisive handling of the migration crisis and is seen as a chancellor who will keep markets calm when a new government takes office on Monday.

The choice of chancellor is seen as crucial for Mr Burnham, who recently told Andrew Marr on LBC that he had not yet decided who would get the job.

But Ms Mahmood is seen as unlikely to spook markets, having previously been endorsed by former prime minister Sir Tony Blair as a potential leader of the party and being further to the right of the party than Mr Miliband.

A source told Independent: “Shabana is in the driver’s seat for this job. There will be no Ed anymore. But Andy will do things differently than before.”

Another added: “Previous leader Ed Miliband [of the party] is problematic. “The net zero thing is not ideal either.”

Last year, when rumors emerged that Sir Keir would sack Rachel Reeves, the outgoing prime minister was forced to make a public statement reassuring his future to avoid a run on UK bonds that would hit borrowing costs.

Meanwhile, Mr Miliband, who served as Sir Keir’s energy secretary, has caused division in Mr Burnham’s team.

Some of his decisions in his current role, such as dropping opposition to new oil and gas drilling in the North Sea, have wreaked havoc on businesses and were seen by some as confirmation that he would take the chancellor’s job. But beyond concerns about his tough stance on net zero policies, there are also concerns about his image as the former leader of the Labor Party, who conspicuously failed to win the support of voters in the 2015 election.

Other names in the chancellorship include former health secretary Wes Streeting, outgoing chancellor of the Duchy of Lancaster Darren Jones and foreign secretary Yvette Cooper.

Mr Streeting was apparently discounted as “too divisive”, while another potential candidate, welfare minister Pat McFadden, was seen as too supportive of welfare cuts; This was highlighted when texts sent to disgraced Labor colleague Peter Mandelson were published.

Some of the cabinet reshuffle will see economic policy handled by Downing Street and the Cabinet Office rather than the Treasury.

In an interview on former England football captain and former BBC presenter Gary Linker’s podcast, Mr Burnham hinted that a wealth tax could be introduced.

He said: “Frankly, I will take the time to properly look at the state of affairs, especially the financial situation. I’m not going to rule things out right now. I believe we need a greater sense of justice and we need people to feel like things are being done right and fairly.

“But at the same time, you know, I don’t want to be perceived as someone who comes in with grudges and agendas and just finds a group and demonizes it or creates a new way to divide people.

“So, you know, decisions that have to be made in a timely manner are going to be difficult. I’m not going to shy away from that. You know, we’re going to have to work pretty hard to make sure we can pay our way.”

“And at some point that may have to take a little bit more. But, you know, those decisions are not for now. They’re for another day.”

Independent It has previously been announced that former transport secretary Louise Haigh is set to lead the Cabinet Office as chancellor in a strengthened Duchy of Lancaster role, and will see her control aspects of economic policy as well as economic policy.

Former deputy prime minister Angela Rayner and current deputy leader Lucy Powell are also set for cabinet posts, while culture minister Lisa Nandy is also expected to be promoted.

While things won’t be confirmed before Monday, when Mr Burnham will officially take over from Sir Keir, who becomes Labor leader, on Friday, there is still speculation about who will make it into his top team.

But one very senior minister admitted: Independent Little is known about who will take on what roles.

“This is such a spectacular coup that no one has any idea what happened,” they said. “Let’s hope Andy and his team know what they’re doing.”

Ms Mahmood’s spokesman said this was a matter for Mr Burnham’s office. Mr Burnham’s team declined to comment.

Shadow chancellor Sir Mel Stride said: “Andy Burnham should rule out a new tax raid. Instead he is fueling speculation about new taxes.

“We know how this will end – we’ve already seen it last year. Fears of tax rises in the budget will mean investment and hiring are put on hold and wealth creators will leave our shores.

“Labour’s answer is always more taxes. Only the Conservatives have a plan to build a stronger economy by lowering the welfare bill so we can reduce the tax burden and make Britain work.”