Earlier on Wednesday, the pound strengthened to a one-year high against the euro amid speculation that Mahmood would take over from Rachel Reeves when Keir Starmer resigns as prime minister on Monday, instead of the more left-oriented energy minister, Ed Miliband.
A representative for Mahmood did not provide a comment on the report, and Burnham’s team has yet to respond.
The FT noted that a spokesperson for Burnham also refrained from commenting on potential ministerial appointments prior to their official announcement on Monday.
While Mahmood has limited experience in economic policy and has adopted a stringent stance on immigration, she aligns more with the center-right of the Labour Party compared to Miliband, whose advocacy for net-zero emissions policies has faced criticism from some businesses.
In a separate interview, Burnham mentioned he would take the necessary time to evaluate the country’s finances but wouldn’t shy away from making tough choices, including potentially increasing taxpayer contributions.
“We will need to put in considerable effort to ensure we can balance the budget, and at some stage, that might require asking for a bit more — but those decisions are not for now; they are for another day,” he stated in an interview with broadcaster Gary Lineker, which was published on YouTube.
