Who is frontrunner to be the UK's next chancellor?

Here is a story making headlines in the economy: Who is frontrunner to be the UK's next chancellor? Image source, Getty Images/PA MediaByRachel Clun, Mitchell Labiak and Michael Race, Business reportersPublished23 June 2026Updated 28 minutes agoAndy Burnham will be moving in to Downing Street on 20 July, as he becomes the next UK prime minister following the resignation of Sir Keir Starmer. But who will live next door in Number 11 as chancellor?

Officially, Burnham's team says no decision has been taken and cabinet position announcements won't be made until Monday. But that hasn't stopped speculation about who may take on the top Treasury role - and attempts at influencing Burnham's choice in chancellor. Whoever it is, 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.

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Here are the names of those believed to be in the running for the job - and what they could mean for your finances. Shabana MahmoodImage source, EPA/ShutterstockThere has been increasing talk of the current home secretary becoming chancellor. The has been told there are "live discussions" about putting Mahmood in Number 11, while the Financial Times, external is reporting it as a certainty based on three sources close to Burnham.

While she does not have an economics background, she is a senior minister on Labour's right and it may be felt that she could reassure financial markets and smooth the transition to a Burnham government. Kathleen Brooks, research director at XTB, said the markets were already rallying in relief to reports that Mahmood would become chancellor, with the pound up about 1% against the US dollar this week. "It tells us two things about Andy Burnham's government: firstly, the market trusts Mahmood to take a sensible approach to economic policy, and to tackle the hard questions of welfare spending, secondly, Burnham is willing to have those to the right of the Labour party in his cabinet in key economic roles," Brooks said.

However, according to separate reports from the Press Association, Mahmood is keen to remain as home secretary and see through changes she has brought in to the asylum system. Ed MilibandImage source, Getty ImagesIn late June, Ed Miliband was the bookmakers' strong favourite for the number two job in British politics, with the former Labour party leader politically closer to Burnham than other rivals. However, opinions differ on whether former Treasury adviser Miliband would receive the backing of the financial markets, which the government depends on to lend money.

Some 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.

Economists are analysing what the news means for the markets.