Concerns are mounting that tax rises expected under Andy Burnham could damage the UK economy, coming just as new figures show growth already stalling. The economic anxiety is coupled with political turmoil over who will serve as Chancellor, with reports suggesting Burnham has wavered over appointing Ed Miliband to the role, prompting speculation and market reaction.

Sterling reportedly strengthened as traders bet that Miliband, seen by some as a "Red Ed" figure likely to pursue higher taxation, will not get the Chancellor job after all. Related reporting points to Shabana Mahmood emerging as the new front-runner for the post amid what is described as "Chancellor chaos", with Burnham accused of dithering and U-turning on his earlier apparent preference for Miliband, who is said to be furious at the reversal.