Speculation is swirling around Westminster as Andy Burnham prepares to step into No 10, with Labour’s top brass and political observers alike weighing who will help shape Britain’s direction in the coming years. The buzz isn’t just about policy—though there’s plenty of that—but about the people who’ll be at the helm. And at the heart of the chatter? The possible return of David Miliband to frontline politics and the future of his brother Ed, both of whom could soon be central figures in Burnham’s new government.
On June 28, 2026, Labour’s Deputy Leader Lucy Powell was quick to brush off mounting speculation about who would be Burnham’s Chancellor, dismissing it as “tittle tattle” and “distracting.” Speaking to the BBC’s Victoria Derbyshire, Powell said, “Ed Miliband would make a good Chancellor,” but she refused to be drawn further into the debate, insisting the party’s focus should be on delivering for the public rather than indulging in “distracting conversation” about cabinet positions.
The Sunday Times had fueled the rumor mill earlier that day, suggesting that Burnham could appoint Ed Miliband as Chancellor and David Miliband as Foreign Secretary. The prospect of both Miliband brothers returning to the cabinet—after their dramatic leadership contest in 2010—has captured imaginations across the political spectrum. Yet, as Powell emphasized, the real priority for Labour is “getting on with the job, delivering on the manifesto we were elected on only two years ago—a very bold manifesto.”
Burnham, who just last week was sworn in as MP for Makerfield after a by-election victory, is widely expected to be named Labour leader on July 17, with his formal handover as Prime Minister anticipated for July 20. He’s set to outline his economic agenda in a major speech on July 6, which many see as the launchpad for his premiership. His vision? Radical devolution—pushing power and financial control out of Whitehall and into the hands of regional mayors and councils across the UK.
According to The Times, Burnham’s plans echo those in his book, Head North, advocating a “more balanced approach, where councils and mayors were dealt some cards too.” He wants regional leaders to have a bigger say over social housing, welfare, and post-16 education, hoping this will boost economic growth and ease the pressure on London’s housing market. “What Andy is saying is that this is one of the biggest economies on the planet, and yet we have some of the poorest regions in Europe in this country, and that is because of the grotesque regional economic inequality we have in this country,” Housing Minister Steve Reed told Sky News on June 28. Reed insisted Burnham’s approach “benefits the South East if the rest of the country does well,” arguing that opportunities and growth outside London would help everyone by reducing the capital’s housing crunch.
Burnham’s focus on domestic policy is no accident. Allies say he wants to spend less time on international travel than his predecessor, Keir Starmer, and more time tackling the cost of living crisis and regional disparities. But that doesn’t mean foreign affairs will be neglected—far from it. Behind the scenes, senior Labour figures are urging Burnham to draw on the party’s deepest pool of talent, including the internationally respected David Miliband. The Observer reported on June 27 that Burnham is “actively considering” appointing Miliband to a senior post, possibly as Foreign Secretary, with a seat in the House of Lords—a model used by Rishi Sunak to bring David Cameron back into government.
David Miliband, who served as Foreign Secretary under Gordon Brown before leaving Parliament in 2013 to lead the International Rescue Committee in New York, now appears ready to return to British politics. At a London think tank event on June 26, he said he was “optimistic” about Burnham’s leadership, praising his “openness and energy” and calling the expected appointment of James Purnell as Downing Street Chief of Staff “fantastic.” Miliband, Purnell, and Burnham all entered Parliament in 2001, and their shared history could be a source of strength—or, as some warn, a potential “psychodrama” if both Miliband brothers are at the top table.
Yet, for others in Labour’s ranks, the mix of talents is exactly what’s needed. David Miliband’s experience as a former Foreign Secretary, his global connections, and his reputation for policy innovation could be invaluable as Britain navigates a turbulent world. Jonathan Powell, widely respected national security adviser and former chief of staff to Tony Blair, has agreed to stay on under Burnham—a major coup, according to The Observer. Powell is credited with shaping Starmer’s international policies, negotiating the Northern Ireland peace process, and recently helping secure a deal over the Chagos Islands. “He is indefatigable, driven, and has contacts in all corners like nobody else,” one source told the paper.
For his part, David Miliband has made clear his priorities. At the think tank event, he repeated his criticism of Keir Starmer’s decision to cut UK development assistance from 0.5% to 0.3% of national income, but welcomed efforts to prioritize aid to fragile and conflict-affected states. “Within the amount of money that they've got available, I think it’s really welcome that they put the UK in a leadership position as to the priority it gives to fragile and conflict-affected fragile states,” he said, according to the BBC.
Meanwhile, the question of who will run the Treasury remains open. Rachel Reeves is reported to have conceded she will not stay on as Chancellor, with Ed Miliband—currently Energy Secretary—and Home Secretary Shabana Mahmood both in the running. An unlikely alliance of trade unionists and City traders has reportedly urged Burnham not to appoint Ed Miliband, citing concerns over his net zero policies. Yet, Lucy Powell has continued to back Ed for the role, telling the BBC’s Sunday With Laura Kuenssberg, “Yes, I do actually, but actually I think this is a slightly distracting conversation, because I think we’ve all got a really important job to do.”
As nominations for the Labour leadership close on July 16, the country waits to see if Burnham will face any challengers. Former armed forces minister Al Carns hasn’t ruled out a run, saying Burnham’s economic speech would determine his decision. “We need to see a vision, we need to see the plan, because unfortunately a vision without a plan is a dream,” Carns told the BBC. “What I would like to see is where do we want to be by 2029 and where do we want to be by 2034-35.”
With the new government poised to take shape, all eyes are on Burnham’s next moves. Will he bring both Miliband brothers into his cabinet, risking old rivalries for the sake of experience and unity? Or will he chart a new course, balancing bold domestic reforms with a fresh approach to foreign affairs? For now, Labour is moving swiftly to unite behind its incoming leader, determined to turn the page and deliver on its promises to the British public.