Shabana Mahmood set to be named Chancellor by Burnham
Shabana Mahmood is set to be named Chancellor by Andy Burnham next week when the former Manchester mayor takes the keys to Number 10, according to reports.
The home secretary has now pipped Ed Miliband, Yvette Cooper and Wes Streeting to Rachel Reeves’ post, the Financial Times reported.
A source told the paper: “Shabana is nailed down as chancellor. That’s definitely happening.”
Ed Miliband was, until this week, viewed as the frontrunner for the role – though the prospect of the energy secretary in Number 11 raised eyebrows in Labour and the City.
However, his candidacy triggered concern from business. The former Labour leader has come under fire for refusing to grant fresh oil and gas licences in the North Sea and was seen by some as dogmatically committed to the net-zero agenda.
In recent days, Miliband was said to be considering fresh gas exploration licences in the North Sea in a move seen as a bid to win support from business.
The North London MP is reported to now be a more likely pick for foreign secretary..
One bank boss told City PM that “Mahmood would go down well” in the Square Mile.
Pierre Roke, an analyst at Validus Risk Management, said: “Mahmood is likely to be seen as a more responsible choice than other frontrunners, including Ed Miliband. Her reputation should reassure investors that spending restraint and fiscal credibility will remain priorities.”
Andy Burnham will formally become Labour leader on Friday, before being invited by the King to form a government on Monday – hours after the World Cup final.
A spokesperson for Burnham declined to comment. City PM has approached Mahmood for comment.