Who’s in the running to be Andy Burnham’s chancellor?

With Andy Burnham returning to Parliament yesterday after his resounding win in the Makerfield by-election, attention is quickly turning to who he will have in his top team, given that he is likely to succeed Keir Starmer as Prime Minister.

The most important role in his cabinet will be that of chancellor. It will be central to Burnham’s mission to raising living standards and tackling economic inequality. Given that the former Mayor of Greater Manchester has made no secret of his desire to bring energy and water under public control, it will be a key role through which to realise his vision for the country. 

So, who’s in the running to be Burnham’s chancellor?

1.Shabana Mahmood

A surprise pick, given that Mahmood has made clear her desire to stay in the Home Office and see through her immigration reforms. Nonetheless, some of Burnham’s allies are keen on the Birmingham MP, viewing her as key in ensuring that the party machine continues to support Burnham.

Mahmood is also considered as someone who has the will power and determination to take on Treasury orthodoxy and see through Burnham’s reforms.

2.Ed Miliband

Miliband is seen as the choice of some of Burnham’s supporters and Labour MPs on the left, who view him as bold and radical enough to see his economic reforms through and challenge the Treasury.

One centrist Labour MP messaged Playbook: “It’s got to be Ed. He worked with Gordon Brown, has been (one of) our best ministers, and gets that we need to deal with the cost of living. I think he’s the most fiscally credible one.”

Miliband is said to have been angling for the role for a while. 

However, Burnham is facing opposition from unions and business. Some argue that appointing Miliband would risk triggering a bond market shock given he has previously argued for higher borrowing to pay for green infrastructure.

Cabinet ministers have also warned Burnham that Miliband is not pro-business enough and will undermine the confidence of the markets.

And to compound matters, he faces opposition from trade unions, with the General Secretary of Unite, Sharon Graham, warning Burnham not to offer the role to Miliband.

She said: “Ed only seems to be interested in one side of the equation, rushing Britain to net zero with almost no thought for jobs, skills and national security.”

3. Wes Streeting

Former Health Secretary Wes Streeting is also in the running to be chancellor, with his allies telling Burnham to pick him to reassure the business community and fossil fuel industry.

Streeting is believed to have struck a deal for a major cabinet position as part of an agreement to withdraw his own leadership bid, a claim Burnham’s camp denies.

UK government bond prices and sterling ticked higher after Streeting’s announcement to row in behind Burnham, and he is now odds-on bookmakers’ favourite for the role of chancellor.

“Wes has just last week laid out a serious and coherent economic vision and would be an excellent chancellor,” one MP to the FT, referring to a speech by Streeting in central London.

Streeting believes his own economic vision aligns with that of Burnham’s. The MP for Ilford North favours development of North Sea oil and gas and investment in core industries, sharing Burnham’s goal of “re-industrialisation”.