Ed Miliband, the energy secretary, faced attacks from trade unions and City figures over his net zero agenda, but an economist argues he would be a strong chancellor under Prime Minister Andy Burnham, benefiting all UK regions and bond markets.
Criticisms of Miliband's net zero plans
Unite and GMB unions claimed Miliband's transition would cause job losses in oil, gas, and utilities, while investors feared higher borrowing. Miliband has refused new North Sea oil licences.
Rebuttal: Net zero creates jobs
Josh Ryan-Collins, professor at UCL, noted that as chancellor, Miliband could use public investment, regional funding, and retraining to support workers. The Treasury blocked his £28bn green plan, which aimed to create 650,000 jobs by 2030. The CBI found the green transition is a major job driver, with the net zero economy worth £105bn (3.5% of GDP) and supporting over 1 million jobs, many in the north-east. Average wages and productivity are above national average. The Climate Change Committee found every £1 of public net zero spending yields benefits of £2.20 to £4.10.
Bond market fears unfounded
Ryan-Collins argued that green investment would reduce inflation by cutting reliance on imported fossil fuels. Britain's 2022-23 inflation was driven by energy price spikes, which have coincided with eight of 10 high inflation episodes since WWII. Investment in renewable energy, insulation, and decarbonisation would reduce exposure to volatile gas prices, strengthening confidence in UK bonds.
Treasury reform needed
The UK's slow growth stems from Treasury orthodoxy that cut public investment and used costly private finance initiatives. Miliband, with experience as a Treasury adviser under Gordon Brown and as a minister, could reform the Treasury. Unison, Britain's largest union, backs him. Andy Burnham's case for public control over essentials aligns with Miliband's green investment to stabilise the economy and create well-paid jobs in poorer regions.
