Key facts
- Labour deputy leader Lucy Powell expressed support for Ed Miliband as a potential chancellor.
- Powell stated Miliband would be "good" at running the Treasury.
- Some within Labour and business express skepticism about Miliband's suitability for the role.
- Concerns include unsettling markets and opposition from unions due to Miliband's environmental policies.
- Andy Burnham is expected to outline plans for devolution and fiscal responsibility.
- Powell and Steve Reed stated there is no need for a general election currently.
Labour's deputy leader, Lucy Powell, has indicated that Ed Miliband would be a suitable candidate for chancellor under a potential future government led by Andy Burnham. Powell stated Miliband would be "good" at running the Treasury, though acknowledged potential political risks and market skepticism.
Powell, who previously served as Miliband's chief of staff, suggested that while she believed he would be effective, discussions about cabinet positions were "distracting" from the party's focus on job creation and the cost of living.
Sources within Burnham's team view Miliband as a strong contender capable of challenging Treasury orthodoxy with a more radical economic approach. However, they also recognize that appointing him could require significant political capital. Concerns have been raised by some within the Labour party and by big business that Miliband's appointment could unsettle markets. Several major unions are also reportedly opposed due to his positions on the North Sea and the net zero agenda.
Burnham is anticipated to deliver a significant speech on the economy, focusing on devolving powers and reassuring financial markets. Allies suggest his commitment to fiscal rules and Labour's tax pledges will be emphasized. The choice of chancellor may reflect his approach to fiscal responsibility, with one ally noting that a "boring" speech might indicate a more conventional choice.
Other potential candidates for chancellor mentioned include Shabana Mahmood, Wes Streeting, Yvette Cooper, and John Healey. If Miliband were appointed, insiders suggest he might need to make early policy moves on issues like the North Sea or welfare spending to demonstrate fiscal seriousness.
Steve Reed, the communities and local government secretary, echoed Powell's sentiment that Burnham would adhere to the party's manifesto and fiscal rules, though with a potential shift in emphasis. Both Powell and Reed dismissed the idea of an immediate general election, stating the focus should be on delivering on the current mandate.