Andy Burnham is facing pressure from business leaders and some Labour MPs to exclude Ed Miliband from consideration for the Chancellor position should Burnham become Labour leader and Prime Minister.
Concerns have been raised that appointing Miliband, the current Energy Secretary, to lead the economy could lead to increased taxes, a further push for Net Zero policies that critics blame for job losses and rising energy costs, and significant government borrowing that could destabilize financial markets. These concerns echo past criticisms of Miliband's economic stances, including his 2011 conference speech where he reportedly labeled some businesses as "predators."
Prominent business figures have voiced their opposition. Hotelier Sir Rocco Forte stated that the prospect of Miliband as Chancellor "has sent a shudder through the business community," characterizing him as representing "anti-growth, high-tax, anti-enterprise thinking." Former Pizza Express entrepreneur Hugh Osmond pointed to Miliband's role in energy policy, suggesting it has negatively impacted costs. Sir Martin Sorrell, CEO of S4 Capital, warned of a "further lurch to the Left and an expensive embrace of Net Zero," while UK investor strategist Neil Wilson suggested that financial markets would be "perturbed" by Miliband's appointment.
This debate surfaces as uncertainty surrounds Burnham's potential economic policies. He is expected to outline his plans for growth and commit to existing fiscal rules in an upcoming speech, aiming to reassure markets after previous statements that he would not be "in hock" to bond traders. However, he has not yet revealed his choice for Chancellor to replace Rachel Reeves, with reports suggesting he is considering candidates from different factions of the party, including Miliband and Wes Streeting.
Even some within the Labour party have expressed reservations. One MP backing Burnham stated opposition to Miliband in the Treasury, fearing it would "get off on the wrong foot with business and the unions." Another source close to Burnham noted concerns that the markets and media would "make mincemeat" of such an appointment, though acknowledged Miliband's team believes he can navigate Treasury orthodoxy.
A former Labour minister expressed strong disapproval, suggesting Miliband lacks the necessary understanding of business and public communication for the role. Conversely, former Labour deputy leader Baroness Harman defended Miliband, describing him as a "great talent" who is "intelligent, economically literate and very committed and experienced."
Opposition to Miliband's potential appointment extends to some trade union leaders. Sharon Graham, general secretary of Unite, suggested it would be "a noose around the neck of what we need to do on jobs." Gary Smith, head of the GMB, criticized Miliband's stance against North Sea drilling as "economic madness."
Separately, reports indicate that Burnham's economic advisors believe he should abandon the pledge to maintain the triple lock on pensions, a position that contrasts with his stated commitment to the Labour manifesto.