Andy Burnham has met the leaders of 11 trade unions that help fund Labour, seeking support ahead of his expected premiership — but the question of who will be his chancellor is already causing friction. The meeting, held at Unison’s headquarters, was described as “positive” by union sources, though several issues remain contentious.
During the talks, the GMB union raised the ownership of water and union access to workplaces. Unison pressed the case of migrant care workers facing a longer wait for permanent residency under government plans, with Burnham reportedly open to changing that policy. Unite demanded a wealth tax, more action on the cost of living, and clarity on reindustrialisation plans. Burnham’s commitment to maintaining fiscal rules on debt and borrowing was also questioned.
“Andy Burnham meets union leaders amid tensions over Ed Miliband as potential chancellor, while unveiling an 'Amazon tax' plan.”
A central point of contention is the possible appointment of Ed Miliband as chancellor. Unite leader Sharon Graham has openly criticised the potential appointment, saying Miliband 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 North Sea oil and gas as “shameful” and “economic madness”. However, Andrea Egan, Unison’s general secretary, has backed Miliband for the role. Wes Streeting, Sir Keir Starmer’s former health secretary, is also being mooted as a candidate, though no promises have been made. Miliband is currently seen as the most likely choice.
In a separate interview with Andrew Marr on LBC, Burnham signalled he would introduce an “Amazon tax” by hiking business rates on giant warehouses that serve online retailers while cutting rates for high street shops and pubs. He proposed a 20 per cent cut for pubs and lifting some businesses out of rates altogether. “I think it’s important to prioritise and reward the businesses that bring social benefit,” he said. He insisted he would stick to Labour’s 2024 manifesto promises of not raising income tax, VAT or national insurance, but added there was “some room within that manifesto for movement on tax”.
Burnham, who became the sole candidate for the Labour leadership after winning the Makerfield by-election, could become prime minister as early as 20 July if no other candidate emerges. He has ruled out “crude cuts” to welfare, hinting that taxes will have to rise. He also said he would work with other parties where possible, suggesting common ground with Tory leader Kemi Badenoch on taking a tougher approach to grooming gangs. But the balancing act between union demands, fiscal discipline and tax reform will define his first days in office.