Louise Haigh has returned to the heart of government with one of Westminster’s most influential jobs after Prime Minister Andy Burnham appointed the longtime ally as Chancellor of the Duchy of Lancaster, placing her in charge of the powerful Cabinet Office.

The appointment has immediately fueled political debate, with supporters viewing Haigh as one of Burnham’s most trusted strategists, while critics argue her controversial past and left-wing politics make her one of the most divisive figures in the new government.

Haigh’s relationship with Burnham stretches back nearly a decade, when the pair found common ground over their desire to move the Labour Party away from the centrist direction established during the Tony Blair era.

She went on to become a key figure in Burnham’s political rise, playing a central role in the campaign that helped secure his by-election victory in Makerfield, a result widely seen as paving the way for his eventual capture of the Labour leadership and move into 10 Downing Street.

Political allies say few people understand Burnham’s thinking as closely as Haigh, making her one of the Prime Minister’s most influential confidantes.

However, her return to senior government also revives scrutiny over the controversy that forced her resignation as Transport Secretary in November 2024, only months after becoming one of the youngest women ever appointed to the Cabinet at the age of 36.

Her departure followed reports relating to an incident a decade earlier while she worked for insurance company Aviva. Haigh had reported a work-issued mobile phone as stolen after a mugging but later discovered it in a drawer. After the phone was reactivated, police investigated the matter, leading to a charge of fraud by false representation.

Shortly before entering Parliament in 2015, Haigh pleaded guilty in magistrates’ court and received a conditional discharge.

In her resignation letter, she maintained her account of events while acknowledging it had been a mistake not to notify her employer promptly after finding the phone.

Despite the setback, Burnham has now entrusted her with one of the most significant roles in government, highlighting the confidence he continues to place in her political judgment and loyalty.

Haigh also drew headlines during her time as Transport Secretary after calling P&O Ferries a “rogue operator” over its controversial 2022 decision to dismiss 800 workers and replace them with agency staff.

She publicly encouraged consumers to boycott the company, prompting a swift response from P&O, which withdrew from a government investment summit and temporarily paused a planned £1 billion investment in the London Gateway port expansion.

The dispute forced the government at the time to work to repair relations with the company.

Beyond her political battles, Haigh has become known for advocating a more interventionist economic approach.

In a lengthy essay published in Renewal earlier this year, she argued that governments should take a more active role in shaping economic development and criticized what she described as decades of reliance on liberalized markets.

The article questioned aspects of Britain’s current economic framework and suggested reconsidering the roles of institutions including the Treasury, the Office for Budget Responsibility, and the Bank of England, arguing that fiscal rules should better support long-term investment.

Supporters see the proposals as a blueprint for stronger government involvement in the economy, while opponents argue they represent a significant shift away from free-market policies.

Born into a family with strong trade union ties, Haigh studied at the London School of Economics, Nottingham University, and Birkbeck College before entering politics.

Before becoming an MP, she worked as a waitress in Sheffield, served as a special constable with the Metropolitan Police, and later became a Unite trade union shop steward.

She entered Parliament in 2015 after being selected for the safe Labour seat of Sheffield Heeley, succeeding Meg Munn. She later held several Shadow Cabinet positions under both Jeremy Corbyn and Keir Starmer.

During her time as Shadow Northern Ireland Secretary, she began a relationship with Colum Eastwood, the MP for Foyle and former leader of the Social Democratic and Labour Party. She was previously linked to television presenter Nick Knowles.

Away from Westminster, Haigh continues to base much of her personal life in Sheffield, where she enjoys spending time with friends and her lurcher, Milo.

Now firmly established as one of Andy Burnham’s closest allies, Haigh’s return to the Cabinet is expected to play a major role in shaping the direction of the new Labour government, while ensuring she remains one of the most closely watched figures in British politics.

Source: Various Sources.