Andy Burnham faced a divided Labour movement on Thursday as he met union leaders at Unison's headquarters, with the prospective prime minister's choice of chancellor emerging as a central flashpoint. The meeting, described as "positive" by union sources, saw the GMB raise the issue of water ownership and union access to workplaces, while Unison pressed for changes to immigration rules that would make migrant care workers wait longer for permanent residency. Unite demanded a wealth tax, more action on the cost of living and details of Burnham's reindustrialisation plans, and questioned his commitment to maintaining fiscal rules on debt and borrowing.
Burnham is so far the sole candidate for the Labour leadership, having secured the support of enough MPs and affiliates to progress. If that remains the case, he could become prime minister as early as 20 July. But the question of who will be his chancellor has exposed deep rifts with the unions that help fund the party. Ed Miliband, the energy secretary, is seen as the most likely candidate, but his appointment is viewed as "50/50" by sources close to Burnham. Sharon Graham, leader of the Unite union, has openly criticised the potential appointment, saying Miliband would "put a noose around the neck of job creation" because of his opposition to new oil and gas licences. Gary Smith, general secretary of the GMB, has described the government's net zero policies on North Sea oil and gas as "shameful" and "economic madness". But Andrea Egan, Unison's general secretary, has backed Miliband for chancellor. Other names mooted include former health secretary Wes Streeting and Home Secretary Shabana Mahmood.
“Andy Burnham met union leaders amid a split over the possible appointment of Ed Miliband as chancellor.”
Burnham has insisted he has not yet decided, telling LBC's Tonight with Andrew Marr: "No, I haven't made those decisions, and deliberately not." He added that Westminster's focus on personalities before policy has been "frustrating". Devolution is central to Burnham's agenda: he has pledged to create a "No 10 North" in Manchester and work from the city at least one day a week. His chancellor is expected to split time between 11 Downing Street and northern England, building on a Treasury outpost in Darlington. "Imagine if the chancellor spent part of their working week based outside London. It would change their perspective," a source close to Burnham's team said.
Meanwhile, a Scottish National Party MP has demanded that Burnham remove Peter Mandelson's lord title within a month of becoming prime minister. Seamus Logan said it would be "a betrayal of the public" for the expected next premier to "kick the Mandelson issue into the long grass". Burnham's devolutionary instincts may also face a test with Scotland's first minister, John Swinney, who is weighing whether to collaborate or resist the new prime minister.