Corbyn rewards McDonnell with shadow chancellor role

Updated

Left-wing veteran John McDonnell has been appointed shadow chancellor by Jeremy Corbyn.

The new Labour leader rewarded his close ally and campaign chief with the vital role after being swept to victory on an anti-austerity package.

Angela Eagle, who had been tipped for the job, has been given the business brief with Seema Malhotra shadow chief secretary to the Treasury.

Mr Corbyn sought to show party moderates his team would be inclusive by making closest leadership rival Andy Burnham shadow home secretary.

After a day of behind-the-scenes negotiations, the first confirmed appointments also included Hilary Benn as shadow foreign secretary, Heidi Alexander as shadow health secretary and Lord Falconer, a close ally of Tony Blair, as shadow justice secretary.

But Chuka Umunna and Mary Creagh added their names to a lengthy list of senior figures returning to the backbenches over stark differences with Mr Corbyn over key policy areas, while Ivan Lewis was removed from the Northern Ireland brief.

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