A former Treasury chief has signaled reservations about Andy Burnham appointing Ed Miliband as his Chancellor, stressing that any candidate must reassure markets, trade unions, and the public on economic stability. Darren Jones, who served as Chief Secretary to the Treasury, stated that a potential Chancellor would need to enable the Prime Minister's priorities rather than control them.
Jones indicated that while he has been reassured by Burnham about his economic plans, he declined to confirm if Miliband, the current Energy Secretary, would meet the necessary criteria for the Treasury role. Miliband is widely considered a frontrunner for the position, drawing on his background as a special adviser to Gordon Brown and his academic expertise in economics. However, some within the Labour party, trade unions, and business sectors have expressed apprehension. Concerns include Miliband's past proposals for higher taxes on the wealthy and on businesses, as well as his strong push for Net Zero policies, which critics argue could harm heavy industry and lead to job losses in the oil and gas sector.
Jones, who has ruled himself out of a Labour leadership contest despite some MPs' dissatisfaction with Keir Starmer, met with Burnham this week. He acknowledged that while Labour MPs share Burnham's goals for areas like council housing and public utilities, maintaining economic stability is paramount. He cautioned against excessive borrowing, citing the risk of increased debt interest payments, while also suggesting there might be room for limited additional borrowing. Jones emphasized that a Chancellor must inspire confidence, a test he suggested potential candidates, including Miliband, would need to pass.
Conservative leader Kemi Badenoch has also voiced criticism, suggesting Miliband's potential appointment would reward perceived disloyalty to Sir Keir Starmer. Badenoch referred to Miliband's past challenges to his brother for party leadership and his current alignment with Burnham.
Other potential candidates for Chancellor have also been discussed. Wes Streeting, the former Health Secretary, is rumored to have been promised the role and has outlined a vision of 'progressive capitalism,' advocating for increased North Sea drilling, recruitment of overseas scientists, and reforms to planning rules. Shabana Mahmood, the Home Secretary, is seen as a wildcard, with a background in law and experience as Shadow Chief Secretary to the Treasury. Yvette Cooper, who studied economics and served as the first female Chief Secretary to the Treasury during the 2008 financial crisis, also possesses relevant experience, although she was previously overlooked for the Shadow Chancellor role in favor of her husband, Ed Balls.