Andy Burnham already faces Labour revolt over 'bizarre' plans on day he becomes party leader

Andy Burnham is already facing down the prospect of a backbench revolt over his plans to appoint Shabana Mahmood as his Chancellor.

Despite the pound rising this week amid news of Ed Miliband's snub for the role, Mr Burnham is staring right at a rebellion from his core support - who think Ms Mahmood is too right-wing and is not experienced enough for No11.

The Home Secretary has never held an economic position in Government, though held two Treasury briefs in opposition.

"Shabana has no sense of the economics. It's just not something she’s ever spoken about. She's not collaborative. It's not clear how she would drive the machine," one senior Burnham ally told The Times.

Another Labour MP said: "It's baffling a lot of people because nobody knows what her views are on the economy. Does she even have any? She's never done a speech or intervention. It's just absolutely bizarre and I can't see her as a sensible appointment."

The same MP then claimed Mr Miliband would have been a better choice, as did Rachael Maskell, who hailed him for "advancing the whole climate agenda".

Ms Mahmood's allies pointed to her record of delivery at the Home Office - though more than 300 small boat migrants arrived last week.

"The fact she is willing to do what is right rather than what is popular is a very good trait," one ally said, referring to her migration reform plans which have long sparked fury from the Labour left.

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Andy Burnham set to unleash 'distinctly Labour' future on Britain as he takes reins as party leader

Andy Burnham will promise to unleash a "distinctly Labour" future on the nation in his first speech as Labour leader today.

Speaking at the party's "special conference" to usher in his reign, Mr Burnham will set out a vision for his Government focused on "driving growth in every postcode and returning power to communities".

He will also turn his fire on Margaret Thatcher's Britain, claiming Britain "took a series of wrong turns in the 1980s" when "political power was centralised and economic power privatised".

Improving the state of the country and economy will need a "new path to the one we've been on for the last 40 years", the Makerfield MP will say.

Then, he will unveil his vision for a "distinctively Labour" programme of economic renewal, more state control, reindustrialisation and power back in the hands of local communities.

He will then pledge that his party will be "unashamedly Labour in our priorities and in the decisions we take, putting people and places at the heart of everything we do".

And in a promise preempting a peaceful premiership, he will vow that Labour will become more united, focused on "practical solutions rather than internal division", and more open to working with other parties on the long-term challenges facing the country.

RECAP: IMF pleads with Andy Burnham not to hike taxes and spending as he prepares to waltz into No10

The International Monetary Fund last night warned Andy Burnham against increasing public spending or raising taxes as he prepares to enter Downing Street.

In its latest assessment of Britain's economy, published on Thursday, the Washington-based organisation urged the incoming Prime Minister to remain focused on economic growth and reducing the deficit amid an increasingly uncertain global outlook.

The IMF said: "This calls for a cautious approach to new fiscal pressures: the authorities should be very selective in accommodating new demands and reprioritise, while sticking to the deficit reduction plan."

The organisation also addressed the impact of the conflict involving Iran on energy prices, saying any Government support should be "tightly targeted, temporary and budget-neutral"...

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