Senior business leaders and even Labour MPs who back Andy Burnham have joined forces to warn that Ed Miliband would 'wreak havoc' if put in charge of the economy, the Daily Mail has reported. The Energy Secretary is the frontrunner to succeed Rachel Reeves as chancellor in a future Burnham administration, according to sources cited by The i Paper – a prospect that has triggered a 'furious briefing war' amid deep unease over his uncompromising net-zero stance.
But in a move that could smooth his path to the Treasury, allies of Miliband say he is prepared to soften his position on North Sea gas drilling and is 'winning the argument' to become chancellor. The Energy Secretary, who has built close ties with Burnham, has faced sustained criticism from unions and business leaders over his determination to pursue strict net-zero targets 'at all costs' and his stalling of fossil fuel projects.
“City leaders and Labour MPs warn Ed Miliband would 'wreak havoc' as chancellor, as he softens North Sea gas stance to smooth path under Andy Burnham.”
The i Paper exclusively revealed that Miliband is the leading candidate to replace Reeves, who is widely expected to be sacked in a new cabinet under Burnham. The prospect of a 'Red Ed' chancellorship has sparked alarm in the City, with figures from the world of business – and even Burnham-backing Labour MPs – warning that the net-zero zealot would damage the economy.
Burnham, who is positioning himself to replace Keir Starmer as prime minister, faces hugely difficult decisions on the size of the military and the welfare state. During his Makerfield by-election campaign, Burnham insisted he is 'not squeamish' about the need to reduce the welfare bill, but ruled out 'crude' short-term cuts. Some Labour MPs are also pressing him to end the 'unsustainable' triple lock state pension promise.
Miliband’s reported willingness to give ground on North Sea drilling may be an attempt to defuse opposition from the unions and business figures who have accused him of putting net-zero ahead of economic stability. Whether the concession will be enough to calm the growing revolt within Labour ranks remains to be seen.