Andrea Egan, the general secretary of Unison, has endorsed Ed Miliband for chancellor as the race to lead the Treasury under a potential Andy Burnham government intensifies. The energy secretary is one of two frontrunners to replace Rachel Reeves in No 11, but faces opposition from two other large unions – GMB and Unite.
Burnham's leadership bid gains momentum
Burnham is preparing to give his first major policy speech on devolution and the economy in Manchester on Monday. He is under increasing pressure to clarify who his chancellor will be, with investors, MPs, unions, and business groups arguing it will be the most important decision he makes in office. Keir Starmer's announcement on Monday that he intended to resign as prime minister, followed by Wes Streeting's endorsement of Burnham, has made it overwhelmingly likely the outgoing Manchester mayor will enter No 10 as soon as next month.
Union divisions over chancellor pick
Egan said: "Andy Burnham has a historic opportunity to rebuild our country in the interests of workers and communities, but that chance will be squandered if his government is made up of politicians determined to continue the same failed approach. We need a chancellor who will rewire the economy and properly invest to improve the lives of the majority. Of those reported to be in the running, only Ed Miliband could enact the kinds of policies trade unions and our members urgently need."
However, a senior union official told the Financial Times: "There are ongoing discussions to try to stop Ed Miliband. There is a GMB-Unite axis on this." Unions with strong representation in the North Sea oil industry have been exasperated by Miliband's refusal to back down on his promise not to issue new licences in the North Sea. They also fear he will not approve the Jackdaw and Rosebank megafields, even though doing so would technically not break that promise as they already have licences.
Miliband vs Streeting: contrasting visions
The two leading candidates for chancellor are understood to be Miliband and Wes Streeting, who come from different wings of the party. Streeting, a Blairite, as health secretary encouraged private sector involvement in the NHS. He is seen as more business-friendly and likely to reassure international investors, though some on the left fear he will not prioritise taking water and energy companies back under public control. Miliband is thought of as more ideologically sympathetic to Burnham's agenda, but has earned anger among some in the unions and the business community due to his approach to achieving net zero. Some investors believe Miliband would be anti-business, pointing to his time as Labour leader when he argued companies could be classified as either "producers" or "predators".
Other potential candidates
Other possible choices for chancellor include Shabana Mahmood, the home secretary; Yvette Cooper, the foreign secretary; Pat McFadden, the work and pensions secretary; John Healey, the former defence secretary; and Jonathan Reynolds, the chief whip. Allies of current chancellor Rachel Reeves say she would also like to stay in position, arguing she would be able to keep markets calm while giving full backing to Burnham's policy platform. Asked by the BBC about her chances of staying in the cabinet, Reeves said: "I'm not going to pre-empt the decisions that the new prime minister will make. I'm backing Andy and I think he'd be a great prime minister, but those are his decisions, not mine to make." She later told the British Chambers of Commerce's annual conference: "I hope that whoever is chancellor in the future, whenever that future may be, sticks to what I'm doing. Because it is beginning to bear fruit, and we are seeing that investment return to the economy, that growth return to the economy, and crucially, that stability, so that businesses can plan and invest in the future."
Burnham's team taking shape
Burnham has chosen his former cabinet colleague and long-term friend James Purnell as his chief of staff, angering some on the left of the party who dislike Purnell's Blairite roots. Labour's ruling national executive committee confirmed on Thursday a new leader would be named on 17 July if there was only one candidate. If another MP secures enough support to make the ballot – 81 Labour MPs – the party will hold a leadership election and announce the results on 29 August. The endorsement from Unison, which has 1.3 million members mainly in the public sector, bolsters Miliband's union credentials. Other smaller unions, including the TSSA union, are expected to issue similar supportive messages in the coming days. The National Education Union also backed Miliband earlier on Thursday.
