The economist Lord Jim O’Neill, who has been advising the prime minister, has said he will not be taking a job in Andy Burnham’s government.
Lord O’Neill, a crossbench peer, was once a treasury minister under the Conservatives.
As first reported by, external the Financial Times, he said he did not want the constraints involved in taking on a formal role.
The former chief economist at Goldman Sachs had been tipped to become Burnham’s chief economic adviser.
He said he was enjoying what he was currently doing too much and did not want to have to give up control of his business interests to comply with official rules.
“I’ve decided to not take a formal role,” he said.
“It’s not because of any policy disagreements. I’m a massive fan of the focus on devolution and I hope Andy and his team will be bold on this and everything else.”
“I’ll continue to, hopefully, maintain an informal relationship with the PM and his team,” he added.
He said he did not want “the constraints of a blind trust and all the constraints that would be necessary”.
In placing shares in blind trusts, ministers have no knowledge of how their investment is being handled, to avoid any potential conflict of interest.
From 2015-2016, Lord O’Neill was commercial secretary to the Treasury under the then-Chancellor, George Osborne.
The peer, who grew up in Greater Manchester, was a key figure in pushing the Conservatives’ Northern Powerhouse agenda, which was aimed at boosting the economy of the North of England.
Lord O’Neill is also known as the economist who coined the term Bric in 2001 to describe leading developing or newly industrialised countries with potential for fast growth and, therefore, investment returns.
The original four nations – Brazil, Russia, India and China – later became the Brics when they were joined by South Africa.