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Wes Streeting, once a contender for the leadership, is currently the bookmakers’ favourite to become chancellor. Having endorsed Burnham instead, it is thought that Streeting, a former health secretary, might be rewarded with the second most significant political role in the UK for his loyalty. However, Lord Jim O’Neill, an economist and cross-bench peer who has advised Burnham, cautions against appointing someone purely based on support. Speaking to the BBC without naming anyone explicitly, he remarked, “There are clearly some people pushing to be chancellor who feel they are owed it for their support.”
Despite Burnham’s possible appreciation of Streeting’s assistance, their political orientations vary. Burnham appears more inclined toward increased spending compared to Streeting. Simon French, chief economist at consultancy Panmure Liberum, considers Streeting a “relatively market-friendly option” due to his pro-growth stance but points out the political risk that comes with Streeting’s potential aspirations to become prime minister in the future. French also commented on the nature of political appointments, saying, “Politics is what politics is. It’s a popularity contest.”
Ed Miliband, former Labour leader, ranks as the bookmakers’ second favourite for the chancellorship, with political views that align more closely with Burnham than Streeting’s. Paul Johnson, formerly director of the Institute for Fiscal Studies, sees this political harmony as advantageous. He noted, “You really don’t want people in Number 10 and Number 11 having very different views.” Opinions differ on Miliband’s capacity to inspire market confidence, with Nick Macpherson, former Treasury permanent secretary, telling the Financial Times that a coherent strategy is essential. He praised Miliband, describing him as “one of the few cabinet members with the intellect, experience, and authority to do that.” On the other hand, some critics argue that Miliband’s energy policies contributed to the UK’s higher energy costs, which could impact bond markets’ response to his potential tenure. Additionally, Sharon Graham, general secretary of the Unite union, described Miliband as a “noose around the neck” of job creation, citing his opposition to new oil and gas drilling in the North Sea.
Beyond the frontrunners, there remains a diverse longlist of possible candidates. Among them is the current Home Secretary Shabana Mahmood, who is regarded as fiscally conservative but lacks extensive economic experience. Former defence secretary John Healey is another name, known for his public resignation over defence spending disagreements. However, Paul Johnson warns that appointing Healey would commit Burnham to fulfilling those expenditure demands sooner rather than later, something he would likely avoid, saying, “If I was Andy Burnham, I would not want to tie myself to that particular pillar that quickly.” Other outsiders mentioned include Darren Jones, chief secretary to the prime minister, and Torsten Bell, former chief executive of the Resolution Foundation. As Lord O’Neill succinctly put it, “The ones whose names are in the papers are the ones who are putting themselves forward.
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