Shabana Mahmood is widely expected to become Chancellor of the Exchequer in Andy Burnham's first Cabinet, though his team insists no final decision has been made. The incoming Prime Minister will take office on Monday, July 20, 2026, after Keir Starmer formally steps down at a special Labour conference.
Chancellor of the Exchequer
Speculation over the Treasury role has been intense. Ed Miliband, considered one of Labour's top economic minds, was an early frontrunner after advising Burnham on fiscal matters. However, opponents have pointed to his net zero focus as a potential liability in Labour's industrial heartlands, and concerns that a former party leader might make the Treasury too powerful.
Shabana Mahmood, currently Home Secretary, is now seen as the likely pick. She is viewed as unafraid of radical decisions, as demonstrated by her immigration reforms. However, those reforms have made her unpopular with many Labour MPs who consider them too harsh. Mahmood's background is in law, not economics; she served only four months as shadow chief secretary to the treasury in 2015. Other possibilities include Foreign Secretary Yvette Cooper, Pensions Secretary Pat McFadden, and former Defence Secretary John Healey, though they may be seen as insufficiently bold for Burnham's proposed 'rewiring' of the country.
Foreign Secretary
Yvette Cooper, the incumbent, has reportedly argued to stay at the Foreign Office, noting that there have been eight different foreign secretaries in the past nine years, which hinders diplomatic relationships. The Financial Times has suggested Ed Miliband could be offered the role if passed over for the Treasury, though this might be seen as a demotion. The possibility of David Miliband being appointed foreign secretary via a seat in the House of Lords has faded, with the elder Miliband reportedly more interested in becoming US ambassador, according to The Sun.
Home Secretary
Less speculation has surrounded the Home Office. Mahmood was said to be keen to remain and continue her reforms. However, if Burnham decides to row back on some measures, such as extending the time needed for indefinite leave to remain, he may replace her. Wes Streeting, who supported Burnham on the day of Starmer's resignation, is a potential candidate. Streeting has said he is not 'comfortable' with some of Mahmood's plans but backed them as 'the right thing to do for the country'.
Other Cabinet Positions
Burnham faces the challenge of satisfying supporters while ensuring the right people are in the right jobs. Westminster expects him to appoint long-time loyalist Lou Haigh, the former transport secretary who resigned over a fraud conviction, as Chancellor of the Duchy of Lancaster to oversee civil service restructuring. Other big names include deputy Labour leader Lucy Powell, transport secretary Heidi Alexander, former deputy PM Angela Rayner, long-time supporter Anneliese Midgley, culture secretary Lisa Nandy, and chief whip Jonathan Reynolds. Current Cabinet ministers seen as doing a decent job may also be retained, though someone is bound to be disappointed.
Timeline for Burnham's Ascension
Sir Keir Starmer will formally step down as Labour leader at a special conference in London tomorrow, with Burnham installed as his replacement. However, due to precedent against becoming party leader and PM on the same day, Starmer will remain PM until Monday. He is expected to step down after 11am, with Burnham entering No 10 around an hour and a half later.
