Who could be the UK's next chancellor?

A significant story is unfolding on the international scene. Who could be the UK's next chancellor? Image source, Getty ImagesByMitchell LabiakBusiness reporterPublished42 minutes agoWith Sir Keir Starmer resigning, Andy Burnham, the newly-elected Makerfield MP, is almost certain to be the next UK prime minister. And many believe he will want a new chancellor to replace the current occupant of Number 11 Downing Street, Rachel Reeves.

That person will face quite the in-tray – high debt, low growth, welfare reform, defence spending, and the economic fallout from the US-Israel war with Iran to name a few issues. Here are the names of those believed to be in the running for the job and what they could mean for your finances. Wes StreetingImage source, Getty ImagesThe bookies' favourite to be chancellor is a former contender for the leadership, Wes Streeting.

The Details

Having instead thrown his weight behind Burnham, the thinking is the former health secretary could be awarded the number two job in British politics for his loyalty. However, economist and cross-bench peer Lord Jim O'Neill, who has been providing advice to Burnham, has warned against this approach. While not naming any specific person, he tells the : "There are clearly some people pushing to be chancellor who feel they are owed it for their support.

"Though Burnham may appreciate Streeting's backing, the pair's politics differ - with Burnham seen to be inclined to spend more than Streeting. Simon French, chief economist at consultancy Panmure Liberum, says Streeting is a "relatively market-friendly option" because of his pro-growth comments, but also a political risk because he might someday want to be prime minister. As for the idea that Streeting could get the job because of his support rather than his abilities, French said: "Politics is what politics is.

It's a popularity contest. "Ed MilibandImage source, Getty ImagesMiliband is the bookmakers' second favourite pick, with the former Labour party leader politically closer to Burnham than Streeting. Paul Johnson, former director of think-tank the Institute for Fiscal Studies, sees this as a positive.

What Experts Say

"You really don't want people in Number 10 and Number 11 having very different views," he says. However, opinions differ on whether former Treasury adviser Miliband could rally the markets. Nick Macpherson, the former permanent secretary at the Treasury, told the Financial Times: "The key to gaining the confidence of the markets is to articulate, implement and deliver a coherent strategy.

"Miliband is one of the few cabinet members with the intellect, experience, and authority to do that. "Yet, others see Miliband as an inflation risk, believing his drive for net zero as energy secretary as partly responsible for the UK's high energy prices compared to other countries. Analysts say that reputation, whether accurate or not, could affect how bond markets react to his time as chancellor.

The development has drawn wide international attention, with diplomatic circles watching closely.