Powell Endorses Miliband for Treasury Role
Lucy Powell, Labour’s deputy leader, has indicated that Ed Miliband would be a “good” chancellor ahead of the expected first major economic speech by Andy Burnham, the likely next prime minister, since his return to Westminster.
Powell, who previously served as Miliband’s chief of staff during his time in opposition and maintains close ties with the former party leader, appeared to support the idea of Miliband managing the Treasury. However, some members of Burnham’s team recognize that appointing Miliband could carry political risks.
Amid ongoing speculation about cabinet appointments in a future Labour government, Powell criticized the focus on such discussions as “unedifying,” emphasizing instead the importance of concentrating on job creation and economic security nationwide.
When asked by the BBC whether she believed Miliband would be effective in running the Treasury, Powell responded:
“Yes I do actually, but actually I think this is a slightly distracting conversation, because I think we’ve all got a really important job to do.”
Political Calculations and Reactions to Miliband’s Potential Appointment
There is a perspective within Burnham’s camp that Miliband possesses the capability to challenge Treasury orthodoxy and advocate for a more radical economic agenda. Yet, it is acknowledged that Burnham would need to expend political capital to appoint him.
Concerns have been raised within the Labour Party that Miliband’s appointment as chancellor might unsettle financial markets. Additionally, big business remains skeptical, and several major unions oppose the idea due to Miliband’s stance on the North Sea oil sector and his persistent focus on the net zero emissions agenda.
Burnham’s Upcoming Speech and Policy Direction
Burnham is expected to deliver a significant policy speech on Monday, which will be his first since Keir Starmer’s resignation as prime minister. The speech is anticipated to include ambitious proposals to devolve powers and funding from Whitehall to England’s regions, alongside efforts to reassure financial markets.
Sources indicate that Burnham will emphasize his commitment to adhering to fiscal rules and Labour’s tax promises. One source noted:
“Andy has repeatedly said he will do so, but he needs to stress that again because it needs to really land.”
An ally suggested that Burnham’s focus on fiscal responsibility could signal his choice for chancellor, although no final decision has been made. The ally remarked:
“The more boring the speech is, the more likely it is that Ed will be chancellor.”
Other Potential Chancellor Candidates
Other names mentioned for the chancellor role include Shabana Mahmood, who reportedly prefers to remain at the Home Office, and former health secretary Wes Streeting. Senior Labour MPs Yvette Cooper and John Healey have also been considered potential candidates.
Should Miliband be appointed chancellor, Labour insiders suggest he may need to act swiftly on issues such as the North Sea oil sector or welfare spending to demonstrate his commitment to fiscal responsibility.
One source elaborated:
“Ed would also 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.”
Focus on Cost of Living and Cabinet Speculation
In her BBC interview, Powell reiterated that the party’s priority should be addressing the cost of living rather than engaging in “tittle-tattle” about cabinet positions.
Steve Reed’s Perspective on Labour’s Direction
Steve Reed, the communities and local government secretary, also appeared on the BBC programme. Like Powell, he ruled out the possibility of calling a general election at this time. Reed stated that Burnham would maintain the core principles of Labour’s 2024 manifesto, including fiscal rules, but would introduce a “shift in emphasis and focus.”
Previously a supporter of Starmer, Reed has now expressed support for Burnham. He noted that the prospective prime minister intends to implement changes, particularly regarding devolution and empowering local communities.
Election Timing and Party Unity
Both Reed and Powell dismissed the idea of holding a general election immediately, despite Powell having called for one when Liz Truss became prime minister under the Conservative Party.
Powell explained:
“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.”
“I called for one after Truss because that was a particular time.”
“We live in a parliamentary democracy where the prime minister is chosen by MPs.”
Reed emphasized that an election is unnecessary as the UK does not operate under a presidential system and the public expects the government to focus on governance. He urged party members to maintain unity behind Burnham, stating:
“Fundamentally, we all hang together, or we all hang separately.”
