Key facts
- Trump administration officials have warned against appointing Ed Miliband as UK Chancellor.
- The concerns are reportedly due to Miliband's opposition to new North Sea oil and gas drilling licenses.
- US officials view Miliband's environmental agenda as ideologically driven.
- Donald Trump has previously advocated for increased oil production in the North Sea.
- City figures and banks have also expressed reservations about Miliband's potential appointment.
Senior officials within Donald Trump's administration have privately voiced concerns that appointing Ed Miliband as the UK's Chancellor would be a "mistake." These warnings, reportedly conveyed to British counterparts and senior Labour figures, stem from Miliband's opposition to new oil and gas drilling licenses in the North Sea.
According to reports, US officials believe Miliband's stance on environmental issues and new exploration projects from companies like Shell and Equinor is "ideologically driven." Trump himself has previously criticized the UK's net zero policies, calling them "stupid" and urging the country to "bring back the oil" and utilize the North Sea as a "treasure chest."
Andy Burnham, who is expected to become Prime Minister, has stated he has not yet decided on the Chancellor appointment, though Miliband is considered a frontrunner. While Miliband and Burnham have been allies, they differ on North Sea drilling, with Miliband citing environmental damage and limited economic benefit, while Burnham is "open" to new drilling. This position is supported by many Labour MPs and unions like GMB.
Sources indicate that the Trump administration has clearly communicated its concerns about Miliband's environmental agenda to the UK government. City figures and banks have also reportedly expressed apprehension, with some suggesting a Miliband appointment would be "a disaster" and negatively received by markets. Burnham's allies are reportedly divided, with some viewing Miliband as a "threat to the country," while his own allies argue he is the best candidate to improve the economy.