Labour's deputy leader, Lucy Powell, has stated that Ed Miliband would make a 'good' chancellor in a government led by Andy Burnham, as the likely next prime minister prepares his first major economic speech since returning to Westminster. Powell, who previously served as Miliband's chief of staff, appeared to endorse him for the Treasury role, though some in Burnham's camp acknowledge the political risks involved.
Powell Dismisses Cabinet Speculation as 'Unedifying'
Speaking to the BBC, Powell said the focus should be on creating and securing jobs rather than 'tittle-tattle' about cabinet positions. When asked directly if Miliband would be good at running the Treasury, she replied, 'Yes I do actually, but actually I think this is a slightly distracting conversation, because I think we've all got a really important job to do.'
Powell emphasised that the cost of living crisis should be the party's priority, not internal jostling for positions. 'I think we've all got a really important job to do,' she added, stressing the need for unity.
Miliband Frontrunner Despite Market Concerns
Miliband remains the frontrunner for chancellor, with Burnham's team believing he has the ability to challenge Treasury orthodoxy and pursue a more radical economic agenda. However, some inside Labour worry that appointing Miliband could unsettle the markets. Big business is sceptical, and several major unions oppose him due to his stance on the North Sea and his relentless focus on net zero.
In his upcoming speech, Burnham is expected to announce radical plans to devolve powers and money from Whitehall to England's regions, while also reassuring the markets. Sources said the new Makerfield MP would emphasise his commitment to fiscal rules and Labour's tax pledges. 'Andy has repeatedly said he will do so, but he needs to stress that again because it needs to really land,' a source added.
Fiscal Responsibility as a Signal?
One ally suggested that Burnham's focus on fiscal responsibility could indicate his choice for chancellor. 'The more boring the speech is, the more likely it is that Ed will be chancellor,' they said. Burnham's team noted that no final decision has been made. Other candidates mooted include Shabana Mahmood, though she prefers to stay at the Home Office, former health secretary Wes Streeting, and senior Labour MPs Yvette Cooper and John Healey.
If Miliband does become chancellor, Labour insiders suggested he might need to make early moves—perhaps on the North Sea or welfare spending—to prove his fiscal seriousness. 'Ed would also have to do some things we are already doing much louder, make a show of ditching a few unpopular things, and pick a few that are new, one of which has to be a cost of living intervention,' one source said.
Burnham's Cultural Change Agenda
Powell also addressed the need for cultural change within the Labour Party, which she has previously described as a 'boys' club' plagued by anonymous briefings. She said Burnham is 'very keen' on changing that culture, adding, 'It's about valuing, respecting, and hearing and acting on all the views of all of our colleagues. It's about building and creating a team where people are not appointed because they're part of a political faction or because they're part of a friendship group, but on meritocracy because of their experience, their passion, their commitment.'
No Early General Election
Both Powell and communities secretary Steve Reed ruled out holding a general election now, despite Powell having called for one when Liz Truss became prime minister under the Tories. Powell said that was 'a particular time,' and that 'what people need to see now is us getting on with the job, delivering on the manifesto we were elected on only two years ago.' Reed added that the UK does not have a presidential system and that the public 'want us to get on with the job.' He warned colleagues to stick together behind Burnham, stating, 'Fundamentally, we all hang together, or we all hang separately.'
