Ed Miliband has suffered a significant setback after a prominent Labour donor publicly opposed his potential appointment as chancellor under Andy Burnham. Green entrepreneur Dale Vince, founder of Ecotricity, stated that the Energy Secretary is not the right choice for the role, citing poor economic decisions during his tenure at the Department for Energy Security and Net Zero (DESNZ).
Labour donor criticises Miliband's record
Vince told the Ridge and Frost programme that Miliband's time at DESNZ was a mixed bag, with some good moves overshadowed by spending decisions that demonstrate a lack of economic realism. He highlighted the cost of jobs created in carbon capture, noting it amounts to several million pounds per job, which he described as making no business or climate sense. Vince also accused Miliband of failing to pursue essential energy market reforms to reduce bills, such as breaking the link between gas and electricity prices, which he delayed for years before pretending to act recently.
“I don’t think Ed should be chancellor. His time at the Department for Energy Security and Net Zero is a mixed bag – some good moves for sure, but these are overwhelmed by spending decisions that show him to be out of touch with economic reality, pledging vast sums of taxpayer money to schemes with little or no hope of success or of giving anything back to the country,” Vince said. He added that judging by his record as health secretary, Wes Streeting is a far better choice.
Previous criticism from cost-of-living tsar
Vince's comments follow a warning from Iceland boss Lord Walker, the Government's cost-of-living tsar, who said Miliband would be a “disaster” as chancellor. The criticism comes amid ongoing speculation about who Burnham will select to succeed Rachel Reeves as chancellor. Burnham, set to enter 10 Downing Street within weeks, has stated he will not reveal his Cabinet choices until the end of the Labour leadership contest.
Impact on Labour leadership
The donor's intervention adds pressure on Burnham as he prepares to form his government. Miliband's allies argue his record on net zero is strong, but the mounting opposition from key figures may influence the final decision. The contest for chancellor remains one of the most closely watched aspects of the incoming Labour administration.
