Louise Haigh Set to Take Cabinet Office Role in Burnham Government

Louise Haigh is set to become chancellor of the Duchy of Lancaster under Prime Minister Andy Burnham, according to allies who have confirmed her placement in a role that controls the Cabinet Office and shapes government policy. The appointment positions the former transport secretary at the heart of policy formation, working directly with Burnham and Downing Street on major decisions.

Haigh's new position mirrors the current responsibilities held by Darren Jones, who simultaneously serves as chief secretary to the prime minister. Sources close to Haigh indicated the assignment is already confirmed, though the broader reshuffling of Burnham's ministerial team remains fluid with multiple senior positions still being finalized across government departments.

Policy Influence and Economic Direction

The Cabinet Office role grants Haigh considerable sway over the government's economic strategy and wider policy agenda. Reports suggest Burnham intends to channel much of his economic policy through the Cabinet Office and Downing Street rather than relying solely on the Treasury, a structural choice that elevates Haigh's influence. She has previously advocated for wealth taxes and equalization of capital gains tax with income tax—positions that have drawn warnings from business groups concerned about investment implications.

Speculation about other Cabinet positions continues, with home secretary Shabana Mahmood and foreign secretary Yvette Cooper reportedly under consideration for alternative senior roles. The precise allocation of Treasury responsibilities, particularly regarding who succeeds Rachel Reeves, has not yet been disclosed.

Path to Influence

Haigh's trajectory within Burnham's circle represents a significant rehabilitation after her resignation as transport secretary under Sir Keir Starmer. She stepped down following disclosure of a past conviction related to misreporting a lost phone—an issue she had previously discussed with Starmer before her appointment. Since then, she has become a trusted lieutenant within Burnham's team, playing a central role in his parliamentary transition and preparation for the premiership.

An ally described her influence bluntly: "If you want to talk about policies in Andy's government you need to talk to Lou Haigh." Another noted that Starmer "always underestimated her and treated [her] very badly over the resignation."

Her public comments have occasionally generated controversy, including suggestions during a BBC podcast interview that Burnham had been planning his transition for over a year—remarks she later walked back after criticism from fellow MPs.