How Miliband’s ‘green agenda’ could boost his chancellor bid – or cost him the job

How Miliband’s ‘green agenda’ could boost his chancellor bid – or cost him the job The former Labour leader is thought to be Andy Burnham’s favourite to take over the Treasury – the choice will send a message to the world about his vision for government, Albert Toth writes - Bookmark - CommentsGo to comments It is just a week today that nominations for the next Labour leader will open, marking Sir Keir Starmer’s first step on his delayed journey out of Number 10. Former Manchester mayor Andy Burnham is highly likely to run unopposed in the contest – being the only MP with the requisite support – making his coronation as Britain’s next prime minister almost certain. Many changes are expected to follow, not least a new set of faces in government as Mr Burnham weighs up the options for his new cabinet. It is expected he will replace chancellor Rachel Reeves as part of the transition, opening speculation on who could take her place in Number 11. And it is former Labour leader Ed Miliband who has emerged as the frontrunner. The energy secretary is thought to be a key ally of the former Manchester mayor, and a particular favourite of the party’s ‘soft left’, of which both are considered a part. Bu working the most in Mr Miliband’s favour, perhaps, is his policy alignment with Mr Burnham. Mr Burnham began trailing his plans for government for months before he even stood in Makerfield. His speeches have focused on a plan for Britain that would see greater public control of public services, with greater power over these devolved to regions and cities, in a vision often called ‘Manchesterism’. This is a project already tested by Mr Miliband in his time as energy secretary, marked by ‘Great British Energy’, the publicly owned energy investment company launched last year. The company enables the government greater oversight of private sector investment, in a way that intends to deliver for both in pursuit of clean energy. Laurie Laybourn, executive director of the Strategic Climate Risks Initiative, explains: “Great British Energy's focused on communities as well. So you end up in a situation where communities can build their own renewable energy assets and own them. “It's an alternative to a failed large-scale centralised, privatised world, to one in which you have a mixture of big private companies pushing renewable energy at scale, but then local communities doing what they need and feeling like it's theirs as well, and that's really crucial to how you get energy security.” “We therefore see elements of the Miliband agenda that are compatible with whatever Burnham agenda,” he added. For the past two years, Mr Miliband has focused on pursuing a green agenda at the helm of the Department for Energy Security and Net Zero (DESNZ), aiming to boost the UK’s clean energy capacity and resilience to shocks like the Iran or Ukraine wars. This has been the “right approach” says Mr Laybourne adds, “[especially] if you care about the security of our energy and our independence”. But Mr Miliband is not without his detractors. Union bosses have previously come out against the energy secretary for his net zero drive, arguing that it risks jobs, particularly in the North Sea. In May, Unite general secretary Sharon Graham warned that workers in fossil fuel industries risk becoming “the coal miners of our generation” if new North Sea licences are banned without a plan to save jobs. Meanwhile, investors have indicated that Mr Miliband’s record of pushing for greater public investment and control could result in higher government borrowing and a negative reaction from the bond markets. Nigel Green, CEO of deVere Group, the global financial advisory group, said last week that “few potential appointments would attract more scrutiny from financial markets” than Mr Miliband as chancellor. “His views and instincts are well known. Investors would immediately begin asking what his arrival means for taxation, investment and economic growth.” In a speech seen as addressing critics last month, Mr Miliband said: “I’m proud to have led a pro-business, pro-growth department in these last two years. “This achievement didn’t happen by accident, but because of clarity of mission, government investment and building not blocking. As we have shown in energy, progressive government in hard times requires partnership with business to secure economic growth, built on an active industrial strategy.” “This is only the start of what we want to achieve,” he added. A majority of MPs and the wider public support also support the economic policies championed by Mr Miliband, new YouGov polling shared with The Independent has revealed. The survey, commissioned by the Invest in Britain campaign, found that 76 per cent of MPs are in favour of increasing investment to improve the UK economy’s ability to withstand shocks, such as investing in infrastructure, skills, and energy security. Nearly four in five (78 per cent) Labour MPs agree with the policy intention, the survey taken before May’s local elections show, and 58 per cent of Conservative MPs. A separate YouGov poll found that close to two thirds of the public (62 per cent) also support increasing investment to improve the UK economy’s resilience. Louis Willis, director of Invest in Britain, said: “At a time of political drama and economic uncertainty, these findings show that voters and politicians alike recognise the need for greater long-term investment to protect the UK economy from future shocks. “Clean energy investment is a top priority to break the UK’s reliance on volatile fossil fuel markets. The next chancellor – whoever they are – should keep that message firmly in mind.” Whether Mr Miliband ultimately secures the Treasury position will depend on how Mr Burnham decides to balance his cabinet. Heavyweight figures from the party's right are also understood to be angling for the post, most notably senior minister Darren Jones and former Health Secretary Wes Streeting. Who Mr Burnham picks to run his Treasury will be the clearest sign yet of his vision for the future of Britain. Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments