Britain's biggest trade union has challenged Ed Miliband to be the next chancellor, a move that sharpens a bitter race to run the Treasury under incoming government Andy Burnham.
Andrea Egan, general secretary of Unison, has backed the energy secretary as one of two front-runners to replace Rachel Reeves at No 11. News of her endorsement: Unison is the country's largest union, with more than 1.3 million members focused on the public sector. But support is far from unanimous across the board, with two other major unions, the GMB and Unite, lining up against him.
The row between supporters of Miliband and his likely rival Wes Streeting, comes as Burnham prepares to deliver his first policy speech since being elected MP for Makerfield. The former mayor of Greater Manchester will set out his views on spending and the economy in Manchester on Monday, but he is under increasing pressure to call his chancellor, select investors, MPs, unions and business groups all see it as the single most important decision he will make in office. For business owners watching from the sidelines, the ownership of the next seat in Number 11 will change everything from the Autumn Budget to the future ownership of Britain's services. We put the runners and riders of the Treasury here.
Egan didn't mince his words. “Andy Burnham has a historic opportunity to rebuild our country in the interests of workers and communities, but that opportunity will be wasted if his government is made up of politicians who are determined to continue on the same failed path,” he said.
“We need a chancellor who will reform the economy and invest in the right way to improve the lives of the masses. Of those who are reported to be continuing, only Ed Miliband can introduce the kinds of policies that our unions and members urgently need.”
Burnham is gathering his inner circle of advisers and ministers, having entered the Commons last week. Sir Keir Starmer's announcement on Monday that he intends to step down as prime minister, followed quickly by Burnham Streeting's endorsement, has made it increasingly likely that Manchester's outgoing mayor will move into number 10 as soon as next month.
The executive committee of labor confirmed on Thursday that a new leader will be appointed on July 17 if only one will emerge. If the challenger gets the support of 81 MPs and forces a contest, the party will hold a full leadership election and announce the result on 29 August.
The appointment of a new prime minister is already in flames. Burnham chose former cabinet colleague and old friend James Purnell as chief of staff, a decision that angered parts of Labor on the left, wary of Purnell's Blairite pedigree.
Now there is a lot of attention to be paid to who will lead the Ministry of Finance, a body that goes beyond setting tax policy in this autumn's Budget. The next chancellor will be charged with re-growth and overseeing the withdrawal of some of Britain's biggest utilities, an agenda that has direct consequences for investors and the wider business community.
The two main contenders, Streeting and Miliband, come from different wings of the party and are likely to pursue different priorities. Going down the road, like Purnell, Blairite, as health secretary, welcomed private sector involvement in the NHS. He is seen as the most pro-business option and the candidate could convince international investors, although some on the left worry that he will be reluctant to return water and power companies to public ownership.
Miliband, by contrast, seems more in line with Burnham's plan. But he has drawn ire from both unions and business for his radical approach. Some investors believe he will show that he is not in favor of business, pointing back to his time as Labor leader, when he drew a sharp line between companies he characterized as “producers” and those he called “robbers”.
Unions with a strong presence in the North Sea oil industry are angered by Miliband's refusal to soften his pledge not to issue new exploration licences. And they fear he won't approve the Jackdaw and Rosebank megafields, even though proposing them won't break that promise, because both already have licenses. The two projects, which have been analyzed in detail by the Institute for Government, have become lightning rods in the wider debate about energy security and the pace of change.
Another senior union official told the Financial Times on Thursday: “There are ongoing discussions to try to stop Ed Miliband. There is GMB-Unite on the axis on this.”
Unison's endorsement will strengthen Miliband's standing in the Labor movement, and he has no other supporters. Smaller unions, including the TSSA, are expected to issue similar messages of support in the coming days, while the National Education Union came out earlier on Thursday.
However, Miliband and Streeting are not the only names in the frame. Other possible candidates include Shabana Mahmood, the home secretary, Yvette Cooper, the foreign secretary, Pat McFadden, the work and pensions secretary, John Healey, the former defense secretary and Jonathan Reynolds, the chief whip.
Allies of Reeves insist he would like to stay on, saying he is ready to keep markets calm while giving the Burnham platform his full support. His eagerness for the job has not gone unnoticed at City, and his position has drawn into the wider debate over spending as Burnham look for a No.10.
Asked by the BBC on Wednesday about his chances of staying in the cabinet, Reeves said: “I'm not going to let the decisions be made by the new prime minister. I support Andy and I think he will be a great prime minister, but those are his decisions, not mine to make.”
He later told the annual conference of the British Chambers of Commerce: “I hope that whoever is the chancellor in the future, whenever that is in the future, sticks to what I am doing. Because it is starting to bear fruit, and we see that investment is returning to the economy, that growth is returning to the economy, and most importantly, that stability, so that businesses can plan and invest in the future.”
Burnham's teammates, however, are adamant that they will not keep him in the area. For British businesses, the only guarantee is that the answer is coming, and soon.
