The former foreign secretary David Miliband has declared himself “optimistic” about the prospect of Andy Burnham becoming the next prime minister, as speculation intensifies over who will serve as Burnham’s chancellor. Speaking at a Centre for Global Development think tank event in London on Friday, Miliband praised Burnham’s “openness and energy”, calling them “very attractive and positive”. He also welcomed the expected appointment of James Purnell as Burnham’s Downing Street chief of staff, describing it as “fantastic”.
The comments come as Burnham, widely expected to succeed Sir Keir Starmer as Labour leader and prime minister, faces what the New Statesman calls “the biggest choice” of his nascent premiership: who to make chancellor. People who claim to know his mind expect him to decide this weekend, with market uncertainty through next week potentially becoming a major story. No promises have been made to anybody.
“David Miliband backs Burnham as PM while chancellor battle between Ed Miliband and Wes Streeting intensifies.”
Harriet Harman has added her voice to the debate, saying Ed Miliband – David’s younger brother, currently energy secretary – should be given the role. The current chancellor, Rachel Reeves, appears to be fighting a forlorn rearguard action; “Not Rachel,” a Burnham backer told the New Statesman. The two most obvious candidates to replace her are Wes Streeting, from the centre right, and Ed Miliband, from the centre left.
Streeting is the favourite with Ladbrokes, associated with the centre right and pro-business, having worked with the economist Andy Haldane and the guru Will Hutton. But contrary to other reports, after backing Burnham publicly last week, Streeting has neither lobbied nor asked for the job and has no particular expectations, according to a source. The case against him is that he has made no secret of his appetite for the top job, potentially making Burnham nervous about having him as neighbour.
The case for Ed Miliband, meanwhile, is powerful but has not been properly aired, the New Statesman argues. Attacked by union leaders over his net zero policies and savaged by commentators as a knee-jerk left-winger, he would face close scrutiny from bond markets. “It’s actually unfair, but the question is, can Ed get beyond the vicious caricature of him?” one senior MP said.
David Miliband, who quit as MP for South Shields in 2013 to become president and CEO of the International Rescue Committee, was asked at the event whether he was interested in joining Burnham’s government. He replied: “My message is of course to read the IRC’s publications because they provide such an evidence-based and innovative and cost-effective way of serving the most vulnerable and poverty-stricken parts of the world.” When later asked if he had been in contact with team Burnham recently, he did not reply. A source told the BBC he would be “a massive asset to Andy Burnham’s cabinet”, citing work on foreign affairs, humanitarian action and climate change. In theory, Miliband could join the cabinet if given a peerage, as David Cameron did under Rishi Sunak.
With Burnham due to give a speech on the economy and devolution on Monday, the chancellor decision looms as the defining early test of his leadership – one that could unlock billions or trigger a market crisis.