Shabana Mahmood frontrunner for Andy Burnham chancellor role as government plans further tax rises

Shabana Mahmood is the frontrunner to be named Andy Burnham’s chancellor, The Independent reported. She is widely expected to assume the role on Monday. The Independent reported that the choice has created tensions with Burnham’s supporters on the left.

Those MPs had backed Burnham’s entry into parliament to replace Sir Keir Starmer and preferred Ed Miliband for the chancellor post. Mahmood previously supported tax and welfare cuts. Mahmood privately branded Rachel Reeves’ tax hikes “ridiculous”, “anti-aspiration” and “anti-competitive”, according to sources cited by The Independent.

While serving in the Starmer government she publicly backed the measures under collective responsibility but privately criticised increases to employers’ national insurance contributions, the scrapping of non-dom status and the imposition of 20 per cent VAT on independent school fees.

Outgoing housing secretary Steve Reed and deputy prime minister David Lammy, both London MPs, shared similar concerns about the impact of Reeves’ tax rises on investment in the capital. Mahmood also complained that Reeves and the Treasury “failed to consult with the cabinet more widely” on economic policy.

One Labour MP on the left told The Independent that Mahmood is “not the right choice” if Burnham proceeds with plans to raise another £38bn in tax. She is known to oppose wealth taxes, which Burnham has left open as an option. Louise Haigh is expected to hold a major policy role as chancellor of the Duchy of Lancaster.

Haigh has advocated raising capital gains tax to equalise it with income tax. Burnham has stated he will permit drilling for new oil and gas in the Jackdaw and Rosebank fields in the North Sea, a position opposed by Miliband. The number of children with special educational needs and disabilities has reached 1.7 million.