Nicholas Stern, a former chief economic adviser to the Treasury, has urged Andy Burnham to appoint Ed Miliband as chancellor if Burnham becomes prime minister, arguing that the energy secretary has the vision and experience to revive the UK economy. Stern, a professor at the London School of Economics who served as a senior Treasury figure under Gordon Brown, said Miliband is uniquely qualified to accelerate investment and rebuild public trust in the state's ability to deliver.
Growing Support for Miliband as Chancellor
Burnham has not yet named his preferred chancellor candidate for a potential premiership this month. Alongside Miliband, former health secretary Wes Streeting and Home Secretary Shabana Mahmood have been tipped to replace current Chancellor Rachel Reeves. Stern's endorsement adds to a growing chorus of senior academics and officials backing Miliband for the role, which would give him control over the government's £1.4tn annual spending.
“I think of him as competent and strategic. I would also say bold, though I am not using the language of Yes, Minister,” Stern said, referencing the 1980s BBC comedy where civil servants used 'bold' as a synonym for rash. “I mean bold in the sense that we have to have a clear direction showing where investments need to occur and the ability to explain why it should involve an increase in spending of two or three percentage points of national income.”
Investment in Clean Infrastructure
Stern, author of the landmark 2006 review on the economics of climate change, emphasized the need for substantial investment in clean, efficient, and modern infrastructure, particularly in energy, cities, and transport. He argued that such investment is crucial for economic growth, creating an environment where private capital and human capital can flourish. Stern backed Miliband's moratorium on additional North Sea oil and gas drilling licences, stating that propping up old industries would be a diversion from 21st-century technologies.
“Investing in North Sea oil is not a strategy for the technologies of the 21st century. The key is that we have got to invest in people and places as old industries wane,” Stern said. He noted that regions like Aberdeen should benefit from massive investment in new technologies, but the impetus would be lost if the oil industry continued to receive support.
International Stature and Economic Expertise
Stern highlighted Miliband's respected international profile, built through years of attending climate conferences where the UK has been a leader. “The UK looking flaky on [oil drilling] has very serious consequences. It is not simply that we are 0.8% of emissions. Our arguments on climate change and the technologies of the future carry weight beyond our GDP or share of emissions,” he said.
Reflecting on Miliband's background, Stern recalled their interactions when Miliband chaired the council of economic advisers while Stern was at the Treasury. “You could see he understood and was dynamic,” Stern added. Last month, Labour's deputy leader Lucy Powell also said Miliband would make “a good chancellor.”
Green Investment as Economic Strategy
Josh Ryan-Collins, a professor of economics and finance at University College London's Institute for Innovation and Public Purpose, dismissed criticisms that Miliband's net-zero support is costly. “The problem is not ambitious climate policy per se, but the absence of willingness from the Treasury to mobilise resources to support affected workers and regions,” he said. Ryan-Collins argued that Miliband as chancellor would advocate green investment as “the only way to stabilise the UK economy in the long term and create the decent, well-paid jobs that the poorer regions of the country desperately need.”
