Ed Miliband’s hopes of becoming Andy Burnham’s chancellor are under threat, with Burnham’s supporters signalling that the energy secretary’s opposition to North Sea oil and gas could cost him the job.
For the Labour leadership contender who swept to victory in the Makerfield by-election on Friday, the question of who runs the Treasury is a delicate one. Miliband, who led the party from 2010 to 2015, has been widely tipped by MPs and bookmakers as the frontrunner to take over from Rachel Reeves if Burnham succeeds in his bid to become prime minister. The two men are longstanding political allies, having served together in Gordon Brown’s cabinet, and have been in regular contact in recent weeks — including one-to-one phone calls about policy during the by-election campaign, according to three Burnham allies.
“Andy Burnham is rethinking appointing Ed Miliband as chancellor due to his opposition to North Sea drilling.”
But that close bond may not be enough to overcome a fundamental policy rift. Miliband has spearheaded the Labour government’s ban on new North Sea exploration licences and championed a windfall tax on oil and gas profits, first imposed by the Conservatives and then increased by Labour. Burnham, by contrast, told the New Statesman during the campaign that he kept “something of an open mind” on North Sea drilling, holding no “fixed position”. Several sources told the i Paper that the new Makerfield MP may have cooled on the idea of appointing Miliband as chancellor, with his supporters saying Burnham is rethinking the plan.
While Miliband is a favourite among the Labour Party membership — frequently topping polls of the most popular cabinet minister — he is less popular with the public. That could be a liability for Burnham as he prepares for a general election campaign. A spokesperson for Miliband told POLITICO he has “no plans to resign”, but the energy secretary’s influence among Labour backbenchers and members means his next moves could prove decisive.
Both men share a diagnosis of what ails Britain. Miliband told a union event in London in February that ordinary voters are “so angry” because “the country is rigged against them”. Burnham, in his victory speech on Friday, promised “a change in our politics to make it work again for people”. Miliband believes in an interventionist state to spur growth; Burnham wants greater public control of energy, water and other “basics of life”. But the looming tension over North Sea policy may test whether their vision of a new partnership can survive the politics of power.