Home Secretary Shabana Mahmood is now the leading contender to become Andy Burnham’s chancellor after a campaign by opponents of Ed Miliband to stop his appointment to the role.

Mahmood has signalled she would be willing to leave the Home Office to replace Rachel Reeves, a senior Labour source told The i Paper.

Shorts

Burnham’s choice of chancellor, the second most powerful job in government, will likely be fundamental to the success or failure of his government, with no final decision thought to be yet taken. The Cabinet line-up is unlikely to be finalised until the hours before Burnham takes over as prime minister – expected next week.

Opponents of Miliband have been lobbying Burnham to stop him from being appointed to the role, and believe they have succeeded.