Left tells Burnham to put Red Ed in No11: Now hardliner MPs try to halt move to make Mahmood the next Chancellor

By CLAIRE ELLICOTT, WHITEHALL EDITOR Published: 22:04, 16 July 2026 | Updated: 22:10, 16 July 2026 Andy Burnham is facing a major backlash from the Left of his party if he picks Shabana Mahmood for his chancellor. Rachael Maskell became the first Left-wing backbencher to publicly criticise his potential choice and back Energy Secretary Ed Miliband instead. The York MP said Home Secretary Ms Mahmood would not be the 'right person for Chancellor' and said Mr Miliband would be a 'suitable candidate'. It leaves PM-in-waiting Mr Burnham facing the challenge of how to keep his party happy without causing market turmoil. On the eve of his coronation as Labour leader, little is still known about who he is likely to appoint to his cabinet when he takes control of the party. His team insist that no final decision has been made and he will appointments when he enters Number 10 on Monday as prime minister. Ms Mahmood – who is on the Labour Right – is said to be the frontrunner for chancellor despite earlier briefings that Mr Miliband would get the job. News of his potential appointment rattled the markets and is opposed by several of the largest unions who disagree with his stance on North Sea oil and gas. First Labour left-wing MP goes over the top to back Miliband over Mahmood in race for No11 as Burnham prepares to become Labour leader  It would also unsettle the electorate to appoint the man who led Labour to a general election defeat in 2015 to the second most powerful job in Government. But the Energy Secretary's left-wing supporters went into battle for him in a last-ditch attempt to sway Mr Burnham, who has sought their support. 'I don't think Shabana would be the right person for Chancellor. I do think Ed Miliband would be a suitable candidate,' Ms Maskell told Times Radio. 'Not only have I seen the way that he has led his department, and if any department in government needs leadership it is the Treasury, but also I think tying in with the climate agenda is crucial when we know that the expenditure of governments into the future is going to be addressing the challenges which climate is throwing up at us.' She added of Mr Miliband: 'I do think he has got the skills and ability, experience to be able to drive forward a different agenda from Treasury, which is absolutely crucial, but also to push that out across the country as opposed to this real centralisation which has happened in the Treasury for decades upon decades.' MPs from the Left of the party have criticised Ms Mahmood's immigration policies and attempts to stop illegal small boat crossings, which they see as too hardline. Zack Polanski, the leader of the Green Party, also accused Mr Burnham of being 'subservient to the City of London' in opting for Ms Mahmood over Mr Miliband. He said of the reports: 'He is rumoured to have dropped his plans to make Ed Miliband chancellor because bankers in the City of London told him to.' In a clue to her future policies as chancellor, it emerged that in 2014, Ms Mahmood called for the top rate of income tax to be restored to 50p in the pound. She said at the time that it was 'unfair and wrong' for the Tories to reduce it to 45p and that it would be 'right for the next Labour government' to increase it again. She later became a shadow Treasury minister. Mr Burnham and his new chancellor are expected to face a headache next week when they are faced with having to plug a black hole in the finances to pay for defence. While Ms Mahmood is a surprising choice for him given their political differences, the markets rallied after reports of her potential appointment appeared on Wednesday. The pair have also voiced support for tax policies such as windfall taxes on oil and gas companies, levies on tech giants and equalising capital gains and income tax. However, Mr Burnham has previously said 'we've got to get beyond this thing of being in hock to the bond markets' and has signalled that he may increase taxes. Despite early suggestions that Mr Burnham would appoint Mr Miliband, the Energy Secretary's critics within the party are said to believe they have prevented this. City bosses had expressed concern over Mr Miliband being appointed to the role over fears he would increase government borrowing. While Mr Miliband remains popular with Labour members and the Left of the party, some believe making him chancellor could prove divisive.