Labour deputy leader Lucy Powell has endorsed Ed Miliband as a potential chancellor in a government led by Andy Burnham, while cautioning that speculation over cabinet posts is “unedifying.” Speaking to the BBC, Powell described Miliband as “good” for the Treasury role, though she emphasized that the party’s priority should be job creation and addressing the cost-of-living crisis rather than internal “tittle-tattle.”
Miliband Remains Frontrunner Despite Market Concerns
Miliband, currently energy secretary, is considered the leading candidate for chancellor, with Burnham’s team viewing him as capable of challenging Treasury orthodoxy to pursue a more radical economic agenda. However, some Labour insiders worry that appointing Miliband could unsettle financial markets, given his strong focus on net-zero policies and opposition to North Sea oil and gas development. Big business remains sceptical, and several major unions oppose his potential appointment.
Burnham is expected to deliver a major economic speech on Monday, outlining plans to devolve powers and funding from Whitehall to English regions while reassuring markets. Sources indicate the speech will stress adherence to fiscal rules and Labour’s tax pledges, with one ally noting, “The more boring the speech is, the more likely it is that Ed will be chancellor.”
Other Contenders for Chancellor
Other names floated for the Treasury include Shabana Mahmood, though she is reportedly keen to remain at the Home Office; former health secretary Wes Streeting; and senior Labour MPs Yvette Cooper and John Healey. Powell, who served as Miliband’s chief of staff in opposition, said the party must focus on “creating and securing jobs across the country” rather than cabinet speculation.
Burnham’s Team Emphasises Fiscal Responsibility
Labour sources say Burnham has not yet made a final decision on his chancellor. If Miliband is chosen, he may need to take early action—such as on North Sea policy or welfare spending—to demonstrate fiscal responsibility. One insider suggested Miliband would “have to do some things we are already doing much louder, make a show of ditching a few unpopular things, and pick a few that are new, one of which has to be a cost of living intervention.”
Powell Calls for Cultural Change in Labour
Powell also stressed the need to change Labour’s internal culture, which she has previously described as a “boys’ club” plagued by anonymous briefings. She said Burnham is “very keen” on fostering a meritocratic environment where appointments are based on experience, not faction or friendship. “It’s about building and creating a team where people are not appointed because they’re part of a political faction or because they’re part of a friendship group, but on meritocracy,” she told the BBC.
No Early General Election, Say Labour Figures
Both Powell and communities secretary Steve Reed ruled out an early general election, despite Powell having called for one when Liz Truss became prime minister under the Conservatives. Powell argued the current situation is different, stating, “What people need to see now is us getting on with the job, delivering on the manifesto we were elected on only two years ago.” Reed added that the UK’s parliamentary system means the prime minister is chosen by MPs, and the public “want us to get on with the job.” He warned colleagues to unite behind Burnham, saying, “Fundamentally, we all hang together, or we all hang separately.”
