Andy Burnham is facing the prospect of an early rebellion within the Labour Party over reports that he intends to appoint Home Secretary Shabana Mahmood as Chancellor when he becomes Prime Minister next week.
The reported appointment has drawn criticism from some Labour backbenchers, who argue that Mahmood is too centrist politically and lacks the economic experience traditionally associated with the Treasury.
“Shabana has no sense of the economics. It’s just not something she’s ever spoken about. She’s not collaborative. It’s not clear how she would drive the machine,” one senior Burnham ally told The Times, GB News reported.
Another Labour MP said: “It’s baffling a lot of people because nobody knows what her views are on the economy. Does she even have any? She’s never done a speech or intervention. It’s just absolutely bizarre and I can’t see her as a sensible appointment.”
The backlash comes despite a positive market reaction to reports that Ed Miliband is no longer in contention for the role. Sterling strengthened earlier this week after speculation that Burnham had ruled out appointing the Energy Secretary to No. 11 Downing Street, with investors viewing the move as supportive of fiscal continuity.
Mahmood has never held a ministerial post with responsibility for economic policy, although she previously served in two Treasury-related shadow roles while Labour was in opposition.
Supporters of the Home Secretary argue her experience leading the Home Office demonstrates her ability to manage one of Whitehall’s most demanding departments and deliver complex government priorities.
However, critics question whether she has the financial credentials required at a time when the UK faces weak economic growth, elevated borrowing costs and continued pressure on the public finances.
Burnham is expected to take office on 20 July, with his Cabinet appointments likely to provide one of the earliest indications of the direction of his administration.
His choice of Chancellor will be closely watched by financial markets, which are looking for signs that the new government intends to maintain fiscal discipline while pursuing its wider policy agenda.
While investors appear reassured by the prospect of a more moderate Treasury appointment, Burnham may now face a different challenge: maintaining unity within a parliamentary party divided over the economic direction of his government.
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