The Chancellor has become the most high-profile casualty of Andy Burnham 's plan for a new direction at the top of Government after weeks of briefings that she hoped to cling on.

With Rachel Reeves almost certain to be turfed out of No11, Ed Miliband and Shabana Mahmood are said to be vying to take over running the economy.

Andy Burnham has started reshaping his team after admitting in his first speech to the country that the Labour Government 'needs to be better'.