The battle for Andy Burnham's top team is intensifying, with supporters of the Labour leadership contender locked in a high-stakes game of musical chairs over who should become his Chancellor. Sources close to the campaign reveal that the choice between two of the front-runners – former health secretary Wes Streeting and energy secretary Ed Miliband – is having far-reaching implications for the direction of Burnham's government.
The decision on who becomes Chancellor is seen as a litmus test for the kind of Prime Minister Burnham would be. 'Who becomes Chancellor is absolutely key,' said one insider, 'not so much because of the individuals themselves, but because it will give us the clearest sign of what kind of PM he is.'
Burnham's team has spoken to Jim O'Neill, a former Goldman Sachs chief economist and Conservative minister, about becoming his chief economic adviser. However, no final decision has been taken on that role yet.
The contenders for the Chancellor position are diverse – including Miliband, Streeting, Yvette Cooper, Miatta Fahnbulleh, Darren Jones, and John Healey. Those close to Miliband argue that he has the vision and drive to implement some of Burnham's more radical policies, such as bringing utilities into public control.
However, there are concerns about appointing him as Chancellor – his left-wing views could trigger a bond market shock, which would have significant implications for the economy. In contrast, Streeting's allies say he has earned a reputation as a Blairite moderniser who believes in private sector provision of public services.
But some warn that choosing Streeting could alienate those on the left who are keen to see Labour shift further away from its neoliberal past. As one observer noted, 'The choice of Chancellor is not just about economic policy – it's also about signalling where Labour stands on issues like privatisation and public ownership.'
The decision ultimately rests with Burnham himself, but those close to the campaign are bracing themselves for a potentially explosive showdown between his supporters.