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Ed Miliband was 'furious and let down' after being snubbed for Chancellor by Andy Burnham, one of his old New Labour allies has claimed.

Mr Miliband will have insisted that ally Miatta Fahnbulleh took over his old role as Net Zero Secretary as the 'price' for falling into line, according to Ed Balls.

The incoming PM shocked Westminster on Monday by installing veteran former defence secretary John Healey in No11.

The move came despite weeks of speculation that either Mr Miliband or Shabana Mahmood would get the job.

The Labour Left had been pushing hard for Mr Miliband to get the nod, but the prospect had caused alarm among businesses and unions.

He was instead made Foreign Secretary - still one of the Great Offices of State - while Ms Mahmood stayed as Home Secretary.

Ed Miliband (pictured in the Philippines this week) was 'furious and let down' after being snubbed for Chancellor by Andy Burnham , one of his old New Labour allies has claimed

The incoming PM (pictured in Glasgow last night) shocked Westminster on Monday by installing veteran former defence secretary John Healey in No11

Speaking on the Political Currency podcast he hosts with Tory ex-Chancellor George Osborne, Mr Balls said: 'Ed Miliband was not made the Chancellor. He would have been furious and let down.

'I'm sure he made Miatta taking over his job to carry on his work the price for agreeing to that.'

Mr Balls said his understanding was that until the late stages of Mr Burnham's takeover his allies were developing policy with Mr Miliband's team 'as a collective'.

'Suddenly that stopped about a week and a half ago. That policy cooperation ended,' he added.

Mr Balls was shadow chancellor when Mr Miliband was Labour leader, and is still extremely well-connected in the party. He now presents on ITV's Good Morning Britain.

Mr Balls noted that his own wife, Yvette Cooper, had been affected by the reshuffle as she was shifted from Foreign Secretary to the health brief.

'She was supposed to be in the Philippines today. Instead she went to Reading,' he joked.

There are concerns that Mr Miliband's appointment to the Foreign Office could backfire.

The US ambassador was confronted with Mr Miliband's previous comments about 'racist' and 'idiotic' Donald Trump in an awkward interview yesterday.

Warren Stephens insisted the new Foreign Secretary was 'wrong' and had 'hopefully' changed his mind as he was read Mr Miliband's remarks on Sky News.

Mr Balls said his understanding was that until the late stages of Mr Burnham's takeover his allies were developing policy with Mr Miliband's team 'as a collective'

The envoy to the UK also said he 'disagreed' with the former Net Zero Secretary on energy policy, and suggested their sole face-to-face meeting had not been smooth.

But he stressed that the Transatlantic relationship would continue despite the tensions.

Mr Miliband held his first talks with counterpart Marco Rubio at a summit in the Philippines overnight, and agreed to visit Washington soon.