The economic landscape ahead for Britain's next Chancellor will be one of unprecedented challenge and opportunity. As Andy Burnham sets his sights on 10 Downing Street, the stakes are high for the individual who will occupy the key role in shaping the nation's financial future. A host of contenders, each with their own strengths and weaknesses, are vying for the top spot – but which of them has what it takes to tackle the country's stubborn debt, stagnant growth, and welfare reform woes?
Wes Streeting, a former leadership contender and ally to Burnham, is reportedly at the forefront of the pack. As a pro-growth advocate with a reputation for being "market-friendly," Streeting could bring a welcome breath of fresh air to investors – but his own leadership ambitions may also create an uncomfortable tension between politics and policy. Meanwhile, Lord Jim O'Neill cautions that loyalty should not be the sole determining factor in Burnham's choice.
Ed Miliband, another key figure in the running, is seen as ideologically closer to Burnham than Streeting. Paul Johnson of the Institute for Fiscal Studies highlights the importance of harmony between Number 10 and Number 11 – a notion reinforced by former Treasury permanent secretary Nick Macpherson's endorsement of Miliband's intellect and experience. However, others raise concerns about Miliband's past as Energy Secretary and his net-zero focus, which may be viewed as an inflation risk by bond markets.
Pat McFadden, currently Work and Pensions Secretary, boasts a wealth of experience in shadow Treasury roles and business ministerial positions – making him a strong contender. His welfare expertise could prove invaluable in tackling the pressing issue of reform, and Simon French of Panmure Liberum suggests he may be seen as a "safest pair of hands" by markets. Yet his close ties to the previous leadership might work against him if Burnham seeks a clean break.