Andy Burnham expected to appoint Shabana Mahmood as UK finance minister, reports say

Wednesday 15 July 2026 - 18:01

By: Sahili Aya

Andy Burnham expected to appoint Shabana Mahmood as UK finance minister, reports say

Former Manchester Mayor Andy Burnham is expected to appoint Interior Minister Shabana Mahmood as the United Kingdom's finance minister when he becomes prime minister next week, according to a report by the Financial Times.

The potential appointment would place Mahmood at the center of Britain's economic strategy as the country prepares for a new political leadership phase.

Mahmood tipped for key economic role

The Financial Times reported, citing three people familiar with Burnham's plans, that Mahmood has been selected to replace Rachel Reeves as Chancellor of the Exchequer.

A spokesperson for Mahmood declined to comment on the report, while Burnham's team also declined to discuss possible ministerial appointments ahead of the formal announcement expected on Monday.

The reported decision has attracted market attention, with sterling strengthening earlier on Wednesday against the euro as investors assessed the possibility of Mahmood taking the Treasury role.

Appointment would mark shift in Labour economic approach

Mahmood currently serves as Home Secretary and has built a reputation for taking a firm position on immigration issues. However, she has limited direct experience in economic policymaking compared with some other senior Labour figures.

Her reported selection places her ahead of Energy Secretary Ed Miliband, who had also been considered as a possible successor to Reeves.

Miliband's focus on expanding net zero policies has faced criticism from some businesses concerned about the economic impact of environmental regulations, potentially influencing the debate over the next finance minister.

Markets watch leadership transition

The expected government reshuffle comes at a sensitive time for the UK economy, with investors closely monitoring future fiscal policy, public spending priorities and business conditions.

The appointment of a new Chancellor of the Exchequer would be one of the most significant decisions facing Burnham as he prepares to take office.

Mahmood's potential move from the Home Office to the Treasury would represent a major career transition and signal Burnham's preferred direction for economic management.