Andy Burnham has held what union sources described as a “positive” meeting with the leaders of the 11 trade unions that help fund the Labour Party at Unison’s headquarters – but a central point of contention remains the possible appointment of Ed Miliband as his chancellor.
The meeting came as Burnham, the sole candidate to replace Sir Keir Starmer and poised to become prime minister as early as 20 July, prepares for an expected premiership built on radical devolution. In a speech on Monday, his first since launching his bid, he suggested local communities should be given “greater public control of essential services”.
“Burnham meets union leaders as row over Ed Miliband's possible chancellorship threatens his expected premiership.”
But the GMB union raised the issue of water ownership and union access to workplaces; Unison pressed for changes to immigration rules for migrant care workers; and Unite pushed for a wealth tax, more action on the cost of living and details of Burnham’s reindustrialisation plans. His commitment to maintaining fiscal rules on debt and borrowing was also questioned.
The tension over Miliband – the former Labour leader who has repeatedly dismissed calls for new oil and gas licences in the North Sea – threatens to fracture the coalition of support Burnham needs. Sharon Graham, leader of Unite, which represents oil and gas workers, has openly criticised his potential appointment, saying he would “put a noose around the neck of job creation”. Gary Smith, general secretary of the GMB, described the government’s net zero policies on the North Sea as “shameful” and “economic madness”, and expressed energy workers’ concerns at a private meeting with Burnham last week.
Yet Andrea Egan, Unison’s general secretary, has backed Miliband for chancellor, according to the Guardian. Another candidate mooted for the role is Wes Streeting, Sir Keir’s former health secretary whose resignation contributed to his downfall, though no promises on job offers have been given. Currently, Miliband is seen as the most likely choice.
Burnham’s devolutionary instincts are central to his pitch. In an article for the Scotsman this week, he wrote: “After 10 years of political turbulence since Brexit, and 20 years of falling living standards since the financial crash, Westminster has not been working for people. It is broken. We will make politics work for you, and the place where you live. The days of Whitehall fighting the devolution of power into the regions and nations are over. For good.”
His proposal to take essential utilities under public control mirrors Scotland’s model, where water is run by Scottish Water, a state quango. But the Scottish government is unlikely to follow England down the mayoral route, a senior figure said: “just another needless layer”.
With Burnham so far unchallenged for the leadership, and trade union support secured for now, the question is whether the dispute over his chancellor will threaten the unity he needs to govern – and whether he can reconcile the competing demands of unions, devolution and fiscal discipline.