Key facts
- London Mayor Sadiq Khan has reportedly lobbied Andy Burnham to appoint Ed Miliband as Chancellor.
- Khan believes Miliband has the political skills and economic expertise to advance Burnham's agenda.
- Miliband's environmental policies, particularly regarding North Sea oil exploration, have drawn criticism.
- Union leaders and some Labour MPs have voiced opposition to Miliband potentially taking the Treasury role.
- Burnham is expected to be confirmed as Labour leader next week.
- Some financial sector figures expressed concern that Miliband's appointment would be poorly received by markets.
London Mayor Sadiq Khan has reportedly urged Andy Burnham, who is poised to become the next Labour leader, to appoint Ed Miliband as Chancellor. Khan conveyed his support in a private discussion with Burnham, citing Miliband's political acumen and economic knowledge as beneficial for advancing Burnham's agenda, including devolution to city regions.
The potential appointment of Miliband to the Treasury is a subject of intense debate within the Labour party. While Miliband has experience in the Treasury from Gordon Brown's government, his environmental policies, particularly his stance on North Sea oil exploration, have faced significant opposition. Critics, including union leaders like Sharon Graham of Unite and some Labour MPs, argue that his focus on net zero initiatives could harm the UK's industrial sector and jeopardize energy security. Miliband has reportedly delayed decisions on new exploration projects for Shell and Equinor, raising concerns about potential winter fuel shortages.
Burnham, who is set to be formally anointed Labour leader next Friday after securing a substantial number of nominations, has reportedly shown some receptiveness to reconsidering policy on North Sea oil and gas, though he has not made firm commitments. Allies of Miliband are reportedly working to reassure party figures about his approach to energy exploration.
While Miliband has the backing of Unison, one of the UK's largest unions, and support from former Treasury permanent secretary Lord Nick Macpherson for his expertise, some figures in the City of London have expressed reservations. A senior banking source suggested that Miliband's appointment would be viewed negatively by markets, citing concerns about his views on deregulation. Other suggestions for the Chancellor role include Wes Streeting and Jonathan Reynolds.