Imagine waking up to find that the person running the country's finances – the chancellor – is a former energy secretary who once wanted to ban all North Sea drilling, while the prime minister's most trusted adviser has a criminal conviction for fraud. That's the political reality facing Britain as Andy Burnham prepares to become the next prime minister. With less than a week until he unveils his first cabinet, the battle for the second most powerful job in government has intensified, and a convicted fraudster has become his right-hand woman.
Andy Burnham, the Mayor of Greater Manchester, is widely expected to become the next prime minister after leading Labour to a decisive victory. He has been assembling his cabinet in borrowed offices in London, including the office of MP Christian Wakeford. In an email sent to his MPs, Burnham insisted that all cabinet appointments would be "made on merit." But the process has been anything but straightforward, with bitter rivalries and surprising contenders emerging.
“Andy Burnham's cabinet picks: Haigh, Cooper, Miliband and the race for chancellor explained.”
The most unexpected figure in Burnham's inner circle is Louise Haigh, the former transport secretary who resigned in November 2024 after it emerged she had pleaded guilty to fraud by misrepresentation in 2014. At the time, Haigh was a 38-year-old Labour MP for Sheffield Heeley, and the youngest woman ever appointed to a cabinet position at age 36. Court documents made public in early 2025 revealed that she had lied about losing her work BlackBerry – claiming it was stolen during a mugging in 2013 – so that her employer, Aviva, would replace it with an iPhone. Haigh is said to be mortified by the incident and greatly regrets it. Yet she masterminded Burnham's successful by-election campaign and is now conducting interviews for cabinet jobs. One backbench friend speculated: "Whatever formal role she gets in the new government, she'll really be Andy's right-hand woman."
Meanwhile, the contest to be chancellor has become the talk of Westminster. Rachel Reeves, the shadow chancellor, is widely expected to be moved out of the Treasury into a lesser role. Ed Miliband, the energy secretary, had been seen as a frontrunner, but his chances are said to be receding after fierce criticism from trade unions and business leaders over Labour's energy policy. Miliband has prepared to soften his stance on North Sea gas drilling to smooth his path to No. 11, but it may not be enough. Yvette Cooper, the home secretary, has emerged as a surprise contender to replace Reeves. The i Paper has learned that Cooper is now the unlikely new favourite for the Treasury.
For UK readers, the composition of Burnham's cabinet matters directly. The chancellor will shape tax and spending decisions that affect household budgets, public services, and the economy. Louise Haigh's prominent role raises questions about the government's judgment – her confidantes admit that "normal people don't get done for fraud and will find it hard to forget." And the shifting battle for the Treasury means policies on energy, housing, and the cost of living could change dramatically depending on who wins.
Q: Why is Louise Haigh controversial? In 2014, Haigh pleaded guilty to fraud by misrepresentation after lying about losing her work phone to get a free iPhone. She resigned as transport secretary in November 2024 when the story leaked. Despite that, she now advises Andy Burnham on cabinet appointments.
Q: Who are the main candidates to become chancellor? Rachel Reeves is the current shadow chancellor but is expected to be moved. Ed Miliband, the energy secretary, was a frontrunner but his chances are fading. Yvette Cooper, the home secretary, has now emerged as the surprise favourite.
Q: What is the Hillsborough Law mentioned in connection with Andy Burnham? The Hillsborough Law is legislation named after the 1989 stadium disaster that killed 97 Liverpool fans. It creates a legal "duty of candour" requiring public officials to tell the truth to inquiries and ensures bereaved families get equal legal funding. Burnham has championed it.
What happens next: Burnham will unveil his first cabinet within the next week. The identity of the next chancellor will be a key indicator of his policy direction – whether he leans more toward Miliband's green agenda or Cooper's centrist approach. Louise Haigh's formal role, if any, in the new government will be closely watched, given her conviction. Meanwhile, the housing crisis that has made homes unaffordable for young people – with prices 7.6 times average earnings – remains a pressing issue that the new cabinet will have to address.
