Shabana Mahmood, the Home Secretary and MP for Birmingham Ladywood, is increasingly likely to become the next Chancellor under incoming Prime Minister Andy Burnham, according to widespread reports. The Birmingham-born politician has served as Home Secretary since September 2025 and has been a key figure in Keir Starmer's Labour government.
Burnham to Replace Starmer as Prime Minister
Former Greater Manchester Mayor Andy Burnham will become Prime Minister on Monday, replacing Keir Starmer in Downing Street. Speculation has been intense about whom he will choose as Chancellor, with current Chancellor Rachel Reeves widely expected to be replaced at the Treasury.
Mahmood has now emerged as the frontrunner for the second most powerful role in the government, according to multiple media reports on Wednesday night. The Guardian reported that sources close to Burnham insisted no final decisions over his Chancellor had yet been made, but Mahmood is seen as the leading candidate.
Miliband Also Considered
Ed Miliband, the former Labour leader and current Environment Secretary, had been considered a favourite for the role. However, concerns among some Labour MPs about his position on the left of the party and potential market reactions may have influenced Burnham's thinking. Burnham appears keen to avoid early clashes with backbenchers, given the challenges faced by his predecessor Starmer.
If appointed, Mahmood would be responsible for major economic decisions on tax, spending, pensions, and benefits. She has been a hugely influential figure in Labour under Starmer, and her appointment would mark a significant step for a Birmingham-born politician.
Burnham is set to enter Number 10 as Prime Minister for the first time on Monday, with his Cabinet appointments expected to be announced shortly thereafter.
