Key facts
- Nicholas Stern, a former chief economic adviser to the Treasury, recommended Ed Miliband for chancellor.
- Stern praised Miliband's "bold" vision for economic revival and investment.
- Miliband's supporters argue for green investment to stabilize the UK economy.
- Stern backed Miliband's moratorium on new North Sea oil and gas drilling licenses.
Nicholas Stern, a former chief economic adviser to the Treasury and professor at the London School of Economics, has urged Andy Burnham to appoint Ed Miliband as the next chancellor. Stern believes Miliband possesses the "bold" vision and strategic experience necessary to revive the UK economy, accelerate investment, and restore public trust in the government's ability to implement initiatives.
Burnham, a contender for prime minister, has yet to announce his choice for chancellor, with Miliband, Wes Streeting, and Shabana Mahmood among those considered. Stern, who also served as chief economist at the World Bank, emphasized Miliband's competence and strategic foresight, particularly in directing investments towards modern infrastructure like energy, cities, and transport. He suggested this would foster an environment where private capital and human capital can flourish, contributing to economic growth.
Stern, the author of the 2006 Stern review on the economics of climate change, supported Miliband's stance on halting new North Sea oil and gas drilling licenses, arguing that focusing on old industries would be a diversion from investing in 21st-century technologies and people. He proposed that areas like Aberdeen could benefit from significant investment in new technologies if the oil industry is not artificially propped up.
Furthermore, Stern noted Miliband's respected standing on the global stage due to his long-term engagement in climate crisis conferences, where the UK has historically played a leading role. He suggested Miliband's extensive experience within the Treasury as an adviser provides him with a deep understanding of industrial strategy and the economy. This view was echoed by Labour's deputy leader, Lucy Powell, who also stated Miliband would be a "good chancellor."
Josh Ryan-Collins, a professor at University College London, countered potential criticisms of Miliband's net-zero policies, arguing that the issue lies not with ambitious climate policy itself, but with the Treasury's reluctance to mobilize resources for affected workers and regions. Ryan-Collins believes Miliband as chancellor would champion green investment as crucial for long-term economic stability and job creation in less affluent areas of the country.