Ed Miliband is new UK Labour leader

The outcome was announced in Manchester at the party’s conference.

In what was described by some commentators as a worse case scenario for the party, analysis of voting intentions by the influential Left Foot Forward website suggested that David Miliband would top the poll on first preferences but go on to lose by 49% to 51% once the second, third and fourth preferences of the losing candidates were redistributed.

As opinion polls and bookmakers predicted that Ed Miliband would pip David on the finishing line, the young sibling’s thoughts were said to be turning to the formation of his potential shadow cabinet.

In another twist which could again draw family relationships into the world of high politics, Miliband is thought to be mulling over both Ed Balls, another leadership rival, and his wife, Yvette Cooper, the shadow work and pensions secretary, as his choice for shadow chancellor.

Although hamstrung during the contest by his association with Gordon Brown, Balls is seen as having run a highly effective leadership campaign.

His analysis of the economic outlook is viewed as providing a template for the new leader to take on the Coalition, by making a cogent case for delaying public sector cuts until growth is more firmly established.

However, Miliband has also been impressed by Miss Cooper’s success over George Osborne, the Chancellor, in a Commons debate on the Budget in the early weeks of the new Government.

He is said to feel that as a young, comprehensive-school educated woman, she will play well with the public, particularly in contrast to  Osborne, who he hopes she will portray as elitist.

If Miliband does go ahead with his plan to make Miss Cooper shadow chancellor, he is likely to offer Mr Balls one of the other big offices of state – with the home affairs brief the most likely option.

There are tensions too over the future of David Miliband in an Ed Miliband shadow cabinet. At the beginning of the contest, friends of the older brother made clear that he would struggle to serve under his younger sibling given what he – and most of Westminster – consider as Ed Miliband’s “betrayal”.

The junior Mr Miliband has made little attempt to disguise the fact that he challenged for the job in a deliberate attempt to stop his brother gaining the leadership because he considers him both too right wing. During the contest, David Miliband was embarrassed by repeated questioning about his intentions, and was eventually forced to state that he would serve under his brother.

The likelihood is that he would be invited to keep his current job of shadow foreign secretary – soothing his wounded pride by allowing him to spend as much time as he liked out of Westminster and away from his brother.

However, there is growing speculation that while David Miliband would accept a position for form’s sake, he would stay no more than six months.