Who could be the UK’s next chancellor?
Who Could Be the UK's Next Chancellor?
Who could be the UK s next - Following Sir Keir Starmer's departure, Andy Burnham, the newly elected Makerfield MP, is positioned to become the next UK prime minister. As the political landscape shifts, speculation is growing around who might take over the role of chancellor, currently held by Rachel Reeves. The next occupant of Number 11 Downing Street will need to navigate a complex set of challenges, including high national debt, sluggish growth, welfare reforms, defense spending, and the economic repercussions of the US-Israel conflict in Iran.
Wes Streeting: A Popular Choice with Political Risks
Bookmakers currently favor Wes Streeting, a former Labour leadership candidate, as the likely chancellor. His alignment with Burnham’s campaign has made him a symbol of loyalty, yet some question if his selection is based on merit or political favoritism. Lord Jim O'Neill, who advises Burnham, suggests that certain figures might feel entitled to the role due to their backing of the leadership. "There are clearly some people pushing to be chancellor who feel they are owed it for their support," he notes in a
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Streeting's market-friendly approach is highlighted by Simon French of Panmure Liberum, who describes him as "a relatively market-friendly option." However, French also warns that Streeting’s ambition to lead could create tension if he seeks the prime ministerial role in the future. "Politics is what politics is. It's a popularity contest," he adds.
Andrew Miliband: A Balanced but Contested Option
Andrew Miliband, the former Treasury adviser, ranks as the second favorite among bookmakers. His political alignment with Burnham is seen as a strength, according to Paul Johnson of the Institute for Fiscal Studies. "You really don't want people in Number 10 and Number 11 having very different views," he argues in a
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Despite this, Miliband’s track record as energy secretary has drawn criticism for contributing to elevated energy costs. Nick Macpherson, a former Treasury permanent secretary, emphasizes that "the key to gaining the confidence of the markets is to articulate, implement and deliver a coherent strategy." He believes Miliband has the expertise to do so, though others remain skeptical about his potential impact on inflation.
Pat McFadden: The Experienced Candidate
Pat McFadden, the current work and pensions secretary, is considered a less obvious contender but is viewed by some as the most qualified. His experience in handling welfare reforms could be crucial for the upcoming chancellor, who faces the daunting task of reshaping the system. French of Panmure Liberum suggests the markets might regard McFadden as "the safest pair of hands" among the candidates, predicting either a positive or neutral response to his appointment.
Yvette Cooper: A Potential Compromise
Foreign Secretary Yvette Cooper could emerge as a surprising choice for chancellor. With a history in government, including her role as chief secretary to the Treasury under Gordon Brown, she sits between the more polarizing options of Miliband and McFadden. Danni Hewson of AJ Bell calls her a "middle of the road" candidate, though she remains "a bit more of an unknown" in the eyes of financial analysts.
Rachel Reeves: The Possibility of Continuity
There is still a chance that Rachel Reeves, the current chancellor, could retain her position. While her close ties to Starmer make a leadership change seem likely, some observers suggest she might stay on if Burnham prioritizes stability over fresh faces. Lord O'Neill advises Burnham to "figure out what his priorities are as prime minister before he picks a chancellor," hinting that Reeves could linger in the role for now.