The prospect of Ed Miliband becoming chancellor under a future Andy Burnham government appears to be fading amid growing concerns over the implications for the economy and energy policy.
According to The Telegraph, Burnham fears appointing Miliband to the Treasury could recreate the power struggle between Tony Blair and Gordon Brown, with one ally saying the appointment is now "50/50".
"Andy himself is alert to the issue," the source said. "He's alert to the dangers of that appointment. You are basically handing over control, and you'll never get it back."
Burnham's allies are also said to be concerned that Miliband's support for costly net zero policies and a left-wing economic agenda could unsettle financial markets.
However, The Times reports that the Energy Secretary is developing key policies for Burnham, particularly those with fiscal implications, and feeding them to his transition team. Miliband and his aides are said to have been working with Burnham for weeks.
Alternatives including Wes Streeting and Shabana Mahmood are reportedly being considered for the role. A spokesman for Burnham declined to comment on potential Cabinet appointments.
Reeves makes her case
In a television interview this morning, Chancellor Rachel Reeves signalled she would like to remain at No 11 under the MP for Makerfield, who is widely expected to succeed Sir Keir Starmer next month after potential leadership challengers failed to materialise.
Ms Reeves told BBC Breakfast: "I'm supporting Andy to be prime minister. I've known him for more than a decade and a half.
"But I'm not going to pre-empt his decisions. Those are his decisions to take as prime minister."
Asked about speculation that she could be demoted and offered another Cabinet role, she replied: "Those are his decisions, not mine, to make."
Trump urges North Sea action
Meanwhile, President Donald Trump urged the Labour frontrunner to back new North Sea oil and gas development.
Trump said the UK was damaging its economy by importing energy rather than producing more of its own.
Speaking at the White House during a meeting with Mark Rutte, Trump said: "The amazing thing is they buy their oil from Norway, which gets the oil from the North Sea. Think of it, and they pay a big premium. Norway's got now $2tn (£1.5tn) in the bank, and the UK is dying."
Asked whether he hoped to become the first world leader to meet Burnham should he become prime minister, Trump replied: "No, but I think we're probably of a different persuasion."