Ed Miliband was reportedly "furious and let down" after being passed over for the Chancellor position by incoming Prime Minister Andy Burnham, according to New Labour ally Ed Balls.

Balls, who served as shadow chancellor when Miliband led the Labour Party, stated on the "Political Currency" podcast that Miliband likely insisted on his ally Miatta Fahnbulleh assuming his former role as Net Zero Secretary as a condition for accepting the Foreign Secretary post.

Burnham's decision to appoint veteran former defence secretary John Healey as Chancellor on Monday surprised Westminster, coming after weeks of speculation that either Miliband or Shabana Mahmood would receive the Treasury role. The Labour Left had strongly advocated for Miliband, but the prospect reportedly caused alarm among business and union leaders.

Mahmood retained her position as Home Secretary, while Miliband was appointed Foreign Secretary, one of the Great Offices of State.

Balls indicated that policy discussions between Burnham's allies and Miliband's team were collaborative until about a week and a half prior to the announcement, at which point this cooperation ceased.

Miliband's appointment as Foreign Secretary has already presented challenges. The U.S. ambassador to the UK, Warren Stephens, publicly disagreed with Miliband's past remarks characterizing Donald Trump as "racist" and "idiotic," stating in an interview that the new Foreign Secretary was "wrong" and had "hopefully" changed his views. Stephens also noted disagreements on energy policy and suggested their initial meeting was not smooth, though he emphasized the continued strength of the transatlantic relationship.

Miliband has since held his first discussions with U.S. counterpart Marco Rubio at a summit in the Philippines and has agreed to visit Washington in the near future.

In a separate development related to the reshuffle, Balls also noted that his wife, Yvette Cooper, was moved from Foreign Secretary to Health Secretary. The incoming PM (pictured in Glasgow last night) shocked Westminster on Monday by installing veteran former defence secretary John Healey in No11