Shabana Mahmood tipped to be Burnham's Chancellor - what could her plans be for the economy and taxes?

Home secretary Shabana Mahmood is said to be the front runner for Chancellor once Andy Burnham sets foot in Number 10 next week.Little is known about the incoming Prime Minister's economic policy, and he has not faced much scrutiny about his plans. Mahmood has remained tight-lipped about the public finances too, having been careful to stick to her Home Office brief since joining the cabinet in September 2025.So who is the Birmingham MP and what would a Mahmood-led Treasury look like? This is what we know about her background, her views on the economy and what she might do to taxes. Rising up the ranks: Shabana Mahmood joined parliament in 2010 and has been Home Secretary since September 2025Who is Shabana Mahmood?Born in Birmingham to parents from Kashmir, Mahmood spent part of her childhood in Saudi Arabia where her father worked as a civil engineer.She worked at her family's corner shop during her childhood and went on to study law at the University of Oxford. Mahmood then worked as a barrister before entering parliament as MP for Birmingham Ladywood in 2010 at 29 years old.She held various junior shadow ministerial roles under Ed Miliband, and was shadow financial secretary for two years. She was briefly promoted to shadow Treasury chief secretary before Jeremy Corbyn became Labour leader.Mahmood is considered a sharp political operator, having hit the ground running since her appointment as Home Secretary last September.However, she has almost no economic experience, other than a brief stint in the shadow Treasury team under Ed Miliband's leadership. Markets have been appeased by news of her likely appointment, especially in light of some other names that had been tipped to become Chancellor. These included current energy secretary Miliband, as well as former chief secretary to the Treasury Darren Jones and former health secretary Wes Streeting. Why would Mahmood be picked as Chancellor?As a self-identified social conservative, Mahmood has drawn criticism from the left of the Labour Party following her crackdown on illegal immigration.But she is widely regarded as a politician who can deliver, which is likely why she has become the favourite to succeed Rachel Reeves. It has been reported that she is likely to deliver what Burnham wants, rather than having her own hardline ideology.While Westminster might be bewildered by Mahmood as Chancellor, markets have been appeased by news of a Chancellor on the right of the party who can offer some continuity.That is preferable to other names that had been thrown around after Burnham had secured his by-election victory, especially Ed Miliband, who would likely have challenged Treasury orthodoxy and called for more borrowing.Miliband was considered, by some of Burnham's allies, to be a shoo-in as Chancellor given his economic experience. He acted as a special adviser to then-Chancellor Gordon Brown from 1997 to 2002. But Miliband is too divisive a figure and is not well-liked across trade unions, business leaders and markets.One of Burnham's biggest challenges has been to keep markets on side after comments he made last year about not being 'in hock to bond markets.' He has since said he will stick with Reeves' fiscal rules and some believe Mahmood is likely to deliver on that promise.What kind of Chancellor would Mahmood be?Mahmood has stayed relatively quiet on fiscal issues, and some consider her to be in the mould of Rachel Reeves. She declined to serve in Jeremy Corbyn's shadow cabinet because of disagreements over the economy.Still, a closer look suggests she may fall in line with Andy Burnham's more left-wing agenda.Mahmood previously argued that Labour should restore the 50p top rate of income tax, saying it was 'unfair and wrong to decrease the rate'. She has also previously argued for the 10p starting rate of income tax to be reintroduced. Continuity? Some say Mahmood could share some common ground with outgoing Chancellor Rachel ReevesThe Home Secretary aligns with Blue Labour - a caucus of MPs who say they are socially conservative and economically left-leaning. They have typically been in favour of taxing wealth and reconsidering public ownership for public services, which fits with Burnham's own views.Her lack of economic experience suggests she is more likely to do his bidding at the Treasury than be an outspoken Gordon Brown-type figure.That brings Burnham's own economic views into sharper focus. The former Greater Manchester mayor has suggested he wants to do politics differently and has garnered huge support from Labour MPs, but he has said virtually nothing about his economic agenda beyond vague promises about devolution.Burnham has previously argued that work is taxed too heavily and wealth too lightly.He told Sky News in 2025: 'We've overtaxed people's work and we've undertaxed people's assets and wealth and that balance should be put more right.'Last year, he said he was in favour of revaluing council tax, which has not been reformed since 1991. He said: 'If that is perceived as a wealth tax, I'm not going to shy away from [that].'This week, Burnham told Gary Lineker that he might 'ask for a little bit more' in tax and refused to rule out imposing a wealth tax.'I do believe we need a greater sense of fairness and people feeling that things are being done in the right way and a fair way,' he said. 'At some point that might be having to ask for a little more. But, you know, those decisions are not for now. They're for another day.'Burnham's team has insisted that no final decisions have been made on Cabinet appointments.But whoever enters Number 11 Downing Street next Monday will have to turn their attention to tackling the cost of living and the Autumn Budget quickly - and follow Burnham's lead.SAVE MONEY, MAKE MONEY4.51% cash Isa4.51% cash IsaTrading 212: 0.91% fixed 12-month bonusUp to £200 cashbackUp to £200 cashback5% cashback when investing at least £1004.21% tracker account4.21% tracker account120 day notice account with 0.23% boostUp to £200 bonusUp to £200 bonusWelcome bonus when you invest £100Up to £750 cashbackUp to £750 cashbackOpen a savings account with at least £10,000Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence. Terms and conditions apply on all offers.