Incoming Prime Minister Andy Burnham is poised to sack Rachel Reeves from the Treasury, sparking intense speculation over who will become the next chancellor. Burnham, who will enter 10 Downing Street on Monday, is reportedly dithering over the appointment as a briefing war rages between potential candidates. He hinted at further tax hikes in an interview with Gary Lineker, stating he “might be having to ask for a little more.”
Ed Miliband: A Divisive Contender
Energy Secretary Ed Miliband has been a central figure in speculation, but his net-zero stance could prove divisive amid soaring energy prices. Unite union boss Sharon Graham warned that his net-zero obsession would be a “noose around the neck” of job creation. Miliband is said to be willing to drop opposition to more North Sea oil and gas drilling to secure the role. However, recent reports suggest he may be out of the running due to concerns he would attract heavy criticism.
Shabana Mahmood: Frontrunner but Reluctant
Home Secretary Shabana Mahmood has emerged as a frontrunner, though she is said to prefer remaining in the Home Office to continue her immigration reforms. Her asylum crackdown has sparked a backlash from some Labour backbenchers, but Burnham backed her in a crunch Commons vote earlier this week.
Yvette Cooper: Continuity Candidate
Foreign Secretary Yvette Cooper has also been tipped as a successor. She could serve as a continuity candidate, aligning with Burnham’s signals to stick with Sir Keir Starmer’s plans for closer EU ties and support for Ukraine. However, she may also stay in her current role.
Wes Streeting: Potential Deal Maker
Wes Streeting, who quit as health secretary in May and called for the Prime Minister to resign, has been mooted for chancellor. He withdrew from the Labour leadership race and backed Burnham, possibly in exchange for the role. It remains unclear if he would have secured the backing of 81 Labour MPs needed to run.
Pat McFadden: Safe Pair of Hands
Work and Pension Secretary Pat McFadden is another option, seen as steady and reliable. However, he may stay in his current role, having stated this week that Labour must stop “simply writing a cheque” for benefit claimants as the welfare bill soars.
