United Kingdom: Shabana Mahmood tipped to become Chancellor of the Exchequer in the incoming Burnham government

Andy Burnham is expected to appoint current Home Secretary Shabana Mahmood as Chancellor of the Exchequer when he takes office as British Prime Minister next week, the Financial Times reports , citing three sources close to the matter.

According to the newspaper, this appointment is expected to come after Keir Starmer's departure, anticipated on Monday. Speculation surrounding Shabana Mahmood's arrival at the Treasury helped support the pound sterling, which reached its highest level in a year against the euro on Wednesday.

Markets feared that Ed Miliband, the current Energy Secretary and a more left-leaning figure in the Labour Party, would be chosen to succeed Rachel Reeves as Chancellor of the Exchequer. His approach to an ambitious climate policy has been criticized by some in the business community.

Neither Shabana Mahmood nor Andy Burnham's entourage have confirmed this information. A spokesperson for Burnham told the Financial Times that no announcement regarding the composition of the next government would be made before Monday.

If this nomination is confirmed, Shabana Mahmood, considered to belong to the right wing of the Labour Party, will take the reins of the British economy despite limited experience in this area. She has notably distinguished herself by a firm stance on immigration issues, a position that could influence the policies of the future government.