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Who could be the UK's next chancellor?

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June 23, 2026 · 1:35 PM
Who could be the UK's next chancellor?

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Who could be the UK's next chancellor?

Image source, PA Media

By Mitchell Labiak

Business reporter

  • Published 23 June 2026, 11:47 BST

Updated 1 hour ago

With Sir Keir Starmer resigning, Andy Burnham, the newly-elected Makerfield MP, is almost certain to be the next UK prime minister.

And many believe he will want a new chancellor to replace the current occupant of Number 11 Downing Street, Rachel Reeves.

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.

Here are the names of those believed to be in the running for the job and what they could mean for your finances.

Wes Streeting

Image source, Getty Images

The bookies' favourite to be chancellor is a former contender for the leadership, Wes Streeting.

Having instead thrown his weight behind Burnham, the thinking is the former health secretary could be awarded the number two job in British politics for his loyalty.

However, economist and cross-bench peer Lord Jim O'Neill, who has been providing advice to Burnham, has warned against this approach.

While not naming any specific person, he tells the BBC: "There are clearly some people pushing to be chancellor who feel they are owed it for their support."

Though Burnham may appreciate Streeting's backing, the pair's politics differ - with Burnham seen to be inclined to spend more than Streeting.

Simon French, chief economist at consultancy Panmure Liberum, says Streeting is a "relatively market-friendly option" because of his pro-growth comments, but also a political risk because he might someday want to be prime minister.

As for the idea that Streeting could get the job because of his support rather than his abilities, French said: "Politics is what politics is. It's a popularity contest."

Ed Miliband

Image source, Getty Images

Miliband is the bookmakers' second favourite pick, with the former Labour party leader politically closer to Burnham than Streeting.

Paul Johnson, former director of think-tank the Institute for Fiscal Studies, sees this as a positive.

"You really don't want people in Number 10 and Number 11 having very different views," he says.

However, opinions differ on whether former Treasury adviser Miliband could rally the markets.

Nick Macpherson, the former permanent secretary at the Treasury, told the Financial Times: "The key to gaining the confidence of the markets is to articulate, implement and deliver a coherent strategy.

"Miliband is one of the few cabinet members with the intellect, experience, and authority to do that."

Yet, others 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.

Meanwhile, the Unite union's general secretary Sharon Graham says Miliband as chancellor would be a "noose around the neck" of job creation, external because of his opposition to new oil and gas drilling in the North Sea.

Pat McFadden

Image source, Getty Images

Though seen as a less likely option than Streeting or Miliband, some view Pat McFadden as the most qualified pick, having held shadow Treasury jobs, been a business minister in a previous Labour government, and also being the current work and pensions secretary.

It is his experience in the latter role that could help him to tackle what many say will be any future chancellor's biggest task: welfare reform.

Panmure Liberum's French believes the markets may view McFadden as "the safest pair of hands" out of those in the running and will either react positively or neutrally if he were picked.

But if Burnham is looking for a clean break from the previous government, he will likely overlook the Starmer-loyalist.

Yvette Cooper

Image source, Getty Images

Foreign Secretary Yvette Cooper could be a surprise compromise pick.

She has years of experience in government, serving as chief secretary to the Treasury under Gordon Brown, and sits somewhere in between Miliband and McFadden or Streeting politically.

Danni Hewson, head of financial analysis at financial services firm AJ Bell, calls her a "middle of the road" option but also "a bit more of an unknown".

Rachel Reeves

Image source, Getty Images

There's always the possibility that Chancellor Rachel Reeves simply keeps her job.

It's looking unlikely, given how tied she is to Starmer, but there are some places taking bets on there being no change in the chancellor this year.

Lord O'Neill says the advice he has given Burnham is to "figure out what his priorities are as prime minister before he picks a chancellor".

If he does so, Reeves may well stick around - at least for now.

Burham has said previously he would stick to Reeves' fiscal rules and the current chancellor was in Burnham's Westminster photoshoot after he was sworn in as MP on Monday.

She was notably absent from Sir Keir's resignation speech.

And the rest

Image source, Getty Images

Then there are the longlist of wildcards.

One of those is current Home Secretary Shabana Mahmood, who is reported to be financially conservative but has limited economic experience.

Former defence secretary John Healey, who very publicly quit because he did not believe the government was spending enough on defence, is another option.

However, Paul Johnson says Burnham would essentially be committing to meeting that spending demand if he chose him.

"If I was Andy Burnham, I would not want to tie myself to that particular pillar that quickly," he said.

Bookmakers and reports also mention chief secretary to the prime minister Darren Jones and former chief executive of the Resolution Foundation Torsten Bell as outsiders.

While some politicians are more likely to be hired than others, each one will want the job.

As Lord O'Neil puts it: "The ones whose names are in the papers are the ones who are putting themselves forward."

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