Want to keep up to date on Welsh politics? Sign up and get political news sent straight to your inbox Thank you for subscribing We have more newsletters Show me See our privacy notice Invalid Email

Shadow Welsh Secretary Owen Smith is being tipped as a potential Shadow Chancellor if Jeremy Corbyn wins the Labour leadership.

Although the Pontypridd MP is backing Andy Burnham in the leadership contest, he has not ruled out serving under Mr Corbyn.

Speculation in the Times newspaper suggests that Mr Corbyn could pick Mr Smith, a former Shadow Treasury Minister, to replace Chris Leslie as Shadow Chancellor.

Mr Leslie has said he would not serve under Mr Corbyn. Leadership contenders Liz Kendall and Yvette Cooper have also declared they would not join a Shadow Cabinet led by the left-winger.

Related:Jeremy Corbyn plans to tread in footsteps of Labour's Welsh heroes with trip to the Valleys

A Welsh Labour source said: “Unlike others, Owen seems to be keeping his options open. If he wins, Jeremy Corbyn would want to unite the party behind him as much as he could.

"Owen’s an existing member of the Shadow Cabinet with experience shadowing the Treasury. With Chris Leslie gone, he could easily become the Shadow Chancellor – and if he is seen to do a competent job it could be the making of him. He’s very ambitious, and when Jeremy stood down from the leadership, he would be in a good position from which to make a bid for the top job himself.”

A spokeswoman for Mr Smith said: “Owen is on holiday and not able to be contacted on this occasion.”

The spokeswoman said she did not know whether the Shadow Welsh Secretary would be prepared to serve under Mr Corbyn or not.

Read more: TV producer who left Labour after 33 years returns to run Jeremy Corbyn's campaign in Wales

However, in an interview with WalesOnline earlier this year, Mr Smith set out his traditional left-wing credentials in a way that would be music to the ears of Mr Corbyn.

He said ordinary people were being “shafted” in today’s Britain and that a future Labour government would stand up for working people, adding: “Who is our economy meant to serve? What’s it there for? It’s not there to serve governments. It’s not there to serve corporations. It’s there to serve people.

Read more:Owen Smith explains why he didn't resign from shadow cabinet over welfare debacle

“It frustrates me. How often do you read a document or a commentary piece or even a government article that talks about work when talking about growth in the economy and how you achieve it? They’ll say is it innovation or is it capital investment, is it entrepreneurship, is it right tax levels? How often do you actually see work and the sweat of people’s brow – labour being called out and characterised as the principal way we generate money in our economy? But the reality is that is exactly the base of our economy: people’s work.

“At the moment ordinary people – the labour force in Britain – are not getting a fair crack of the whip. They are frankly being exploited, in all sorts of ways, whether that is zero hours contracts or short hours, or the way in which people are working 20 hours contracts, or being laid off between jobs or even laid off during shifts.”