Louise Haigh set to land key policy control role in Andy Burnham government

Louise Haigh is set to take a key role in Andy Burnham’s ministerial team, which runs the “engine of government” and is at the heart of policy-making.

Ms Haigh’s allies told Independent He said he has already been appointed as the new chancellor of the Duchy of Lancaster and will lead the Cabinet Office and work closely with the prime minister and Downing Street.

The post is currently held by Darren Jones, who is also the prime minister’s principal secretary, and Ms Haigh is expected to take a similar position.

It comes amid speculation that Ed Miliband will become the new chancellor, although Mr Burnham plans to conduct most of his economic policy through Downing Street and the Cabinet Office.

This will potentially give the outspoken Ms Haigh a major role in economic decisions, with her support for wealth taxes and wider policymaking.

Ms Haigh was Sir Keir Starmer’s transport minister but was forced to resign after new details emerged of her conviction for misreporting a missing phone.

He has since become one of Mr Burnham’s key lieutenants and a central figure in his team as they contest the Makerfield by-election and prepare to take over from Sir Keir.

One ally said: “Lou is going to the Cabinet Office, that’s pretty well known now.”

Another noted: “Keir [Starmer] “I always underestimated him and treated him very badly because of his resignation.”

One MP said: “If you want to talk about the Andy government’s policies you should talk to Lou Haigh.”

But Ms Haigh has caused some controversy since Mr Burnham’s return to parliament.

In an interview with the BBC’s Nick Robinson on the Political Thought podcast, Mr Burnham was revealed to have suggested he had been making plans to replace Sir Keir for more than a year.

He said: “He’s been thinking about it for at least the last year and he’s definitely been planning it.”

However, he later denied that was what he meant, following the reaction of other MPs to the comment.

Ms Haigh also called for wealth tax and capital gains tax to be brought on par with income tax in policy moves that businesses warned would put investment in the UK at risk.

Explaining his views on capital gains tax in an article in the left-wing magazine Renewal last month, he wrote: “This reform is central to restoring confidence that the system does not favor those who manage to structure their income around working earners.

“It would shift the burden of taxation away from punitive business and towards unproductive capital accumulation that contributes little to the growth of the day-to-day economy.”

News about Ms Haigh came as Labor MPs sent CVs to the new leader in the hope of getting ministerial positions.

New special advisers are also being recruited for the new government following the purge of most of Sir Keir’s old team.

Mr Burnham will be elected Labor leader on Friday and will take over as prime minister on Monday.

Independent He contacted Mr Burnham’s office for comment.