Nicholas Stern, a former chief economic adviser to the Treasury, has publicly urged Andy Burnham to appoint Ed Miliband as chancellor if Burnham becomes prime minister. Stern, a professor at the London School of Economics and former senior Treasury figure under Gordon Brown, argued that Miliband possesses the experience and strategic vision necessary to accelerate investment and restore public confidence in the state's ability to deliver.
Growing support for Miliband
Burnham has not yet announced his choice for chancellor. However, Miliband, along with former health secretary Wes Streeting and home secretary Shabana Mahmood, is considered a leading candidate to replace Rachel Reeves. Stern's endorsement adds to a chorus of senior academics and officials backing Miliband for the role, which would give him control over the government's £1.4 trillion annual spending.
“I think of him as competent and strategic. I would also say bold, though I am not using the language of Yes, Minister,” Stern said, referencing the BBC comedy where civil servants used "bold" as a euphemism for reckless. “I mean bold in the sense that we have to have a clear direction showing where investments need to occur and the ability to explain why it should involve an increase in spending of two or three percentage points of national income.”
Investment in green infrastructure
Stern, author of the 2006 review on climate change economics, emphasized the need for substantial investment in clean, efficient, and modern infrastructure, particularly in energy, cities, and transport. He argued this is essential for creating an environment where private capital and human capital can thrive. Stern also endorsed Miliband's moratorium on new North Sea oil and gas drilling licences, stating that propping up old industries distracts from 21st-century technologies.
“Investing in North Sea oil is not a strategy for the technologies of the 21st century. The key is that we have got to invest in people and places as old industries wane,” Stern said. He noted that regions like Aberdeen could benefit from massive investment in new technologies, but this momentum would be lost if the oil industry continued to receive support.
International credibility
Stern highlighted Miliband's potential to be a respected figure on the global stage, given his long involvement in climate conferences where the UK has been a leader. “The UK looking flaky on [oil drilling] has very serious consequences. It is not simply that we are 0.8% of emissions. Our arguments on climate change and the technologies of the future carry weight beyond our GDP or share of emissions,” Stern said.
He also noted Miliband's deep understanding of industrial strategy and the economy, stemming from his time as a Treasury adviser. “I got to the Treasury in 2003 and was second permanent secretary and head of the government economic service, and he was a youngish chair of the council of economic advisers. So we interacted quite a bit, and had many common interests. You could see he understood and was dynamic,” Stern recalled.
Political and academic backing
Last month, Labour's deputy leader Lucy Powell said Miliband would make “a good chancellor”. Josh Ryan-Collins, a professor of economics and finance at University College London's Institute for Innovation and Public Purpose, argued that interpretations of Miliband's net-zero support as costly are misguided. “The problem is not ambitious climate policy per se, but the absence of willingness from the Treasury to mobilise resources to support affected workers and regions,” Ryan-Collins said. He added that Miliband as chancellor would champion green investment as “the only way to stabilise the UK economy in the long term and create the decent, well-paid jobs that the poorer regions of the country desperately need”.
