Shabana Mahmood tipped for chancellor as John Healey in frame for Home Office

Shabana Mahmood is understood to be one of the leading candidates to become chancellor in Andy Burnham’s new cabinet, with John Healey also emerging as a potential Home Office successor.

While speculation is increasing about who Burnham will appoint to the Treasury, the current home secretary, Mahmood, is thought to be well received by those in the interim prime minister’s wing.

The move to number 11 will create one of the most significant vacancies in the government. Speaking about the latest episode of In The Room, The Independent’s In the political podcast, former deputy cabinet secretary Helen MacNamara said Westminster sources suggested Healey, who resigned less than a month ago as defense minister under Starmer, was among the names being discussed for the home secretary.

These conversations seem to have hardened in recent days. Independent He understands that Mahmood’s name has attracted attention in discussions about the Treasury and that Healey is being talked about in Westminster as the leader to take over the Home Office if it is moved elsewhere.

“So, it’s interesting that they came out very, very determined to get Rachel Reeves gone. And that happened in the last few days. And she’s kind of stated that that’s what she’s been waiting for.”

“I think there were some thoughts a few weeks ago that she would stay but that now looks unlikely. So I’m betting on Shabana Mahmood.”

“I actually don’t think it’s a good idea to move Shabana because she’s doing a great job,” MacNamara said. “But he would be great as chancellor. He’s smart, respected, and tough enough.”

“The chancellor’s main job is to build a huge amount of trust. They’re going to have to make really tough decisions, and they’re going to have to carry some of the things that Andy Burnham has already signaled he’s going to do.”

Burnham’s UK economic plan, laid out in a speech on 29 June, included a focus on reducing welfare spending. MacNamara suggested this could strengthen the case for Work and Pensions Minister Pat McFadden, another candidate put forward for the role.

“If you’re Burnham and you know welfare really needs a major transformation, you might want to keep Pat McFadden in the role. He’s a very respected, tough old Labor/new Labor man.”

MacNamara said Healey was “a guy everyone loved.” The former defense secretary resigned on June 11 after accusing Starmer of failing to defend the country at a time when “threats are increasing”.

In his resignation letter, Healey said the prime minister had “failed and the Treasury has been unwilling to allocate the resources the country needs to defend the country at this time of increasing threats”.

The shock exit was seen by many as the last straw for an already weakened Starmer, who resigned as prime minister 11 days later.

MacNamara said: “Healey’s departure has actually enabled Keir Starmer to move on. And if you’ve chosen Shabana Mahmood as chancellor, you’ve got a problem at the Home Office, which is a very bad department. You’re going to need someone really tough.”

MacNamara’s In The Room co-host and former No 10 special adviser Cleo Watson also said she had heard rumors that David Miliband would be open to returning to Labor as foreign secretary.

Watson predicted Miliband could be made Lord to serve in the role, just as David Cameron was brought back into government by Rishi Sunak. “This could be Burnham’s move to say, ‘He’s an old idiot of mine, I just want to give him this briefing and I can move on,'” he said.

Asked during a panel for the Institute of Government what his response to Burnham’s proposal might be, Miliband said: “Let him make his choices. We must give him the space to form his government.”

MacNamara said the rumor was “really encouraging.” It looks like Andy Burnham is taking advantage of the storied all-star cast Labor has at its disposal. “One of the things I found really strange about the Starmer government was that they had a team of really good people and they didn’t really use them.”

Listen to the latest episode in the room Open Apple Podcasts, Spotifyor watch YouTube.