Unison backs Miliband for UK chancellor as unions split
Britain's largest trade union has backed Ed Miliband for chancellor, exposing a deep split in the labour movement over whether the next government will prioritise state intervention or market stability.
Andrea Egan, general secretary of Unison, has endorsed Ed Miliband to replace Rachel Reeves at the Treasury under a potential Andy Burnham government. The backing of the 1.3 million-member public sector union provides a counterweight to a rival faction led by the GMB and Unite unions, which are actively trying to block his appointment.
The battle over the chancellorship matters profoundly for investors and businesses. The next occupant of Number 11 must immediately navigate an autumn budget requiring potential tax rises, stimulate sluggish growth, and oversee the de-privatisation of major utilities like water and energy.
Miliband’s main rival is Wes Streeting, a Blairite former health secretary who encouraged private sector involvement in the NHS. Streeting is widely viewed as more business-friendly and capable of calming international investors. However, his leanings worry left-wing factions who doubt he would push to bring water and energy companies back under public control.
Miliband aligns more closely with Burnham’s ideological agenda, but carries significant baggage in the business community. Some investors recall his time as Labour leader when he labelled companies as either “producers” or “predators”. His strict net zero policies have also alienated unions with strong North Sea oil representation.
GMB and Unite are particularly frustrated by Miliband’s refusal to issue new North Sea licences and fears he will block the Jackdaw and Rosebank megafields. “There are ongoing discussions to try to stop Ed Miliband. There is a GMB-Unite axis on this,” a senior union official said.
Defending her choice, Egan argued a change in economic direction is required. “Andy Burnham has a historic opportunity to rebuild our country in the interests of workers and communities, but that chance will be squandered if his government is made up of politicians determined to continue the same failed approach,” she said. “We need a chancellor who will rewire the economy and properly invest to improve the lives of the majority. Of those reported to be in the running, only Ed Miliband could enact the kinds of policies trade unions and our members urgently need.”
The jockeying follows Keir Starmer’s Monday announcement that he will resign, making Burnham’s entry into Number 10 likely next month. Labour’s ruling national executive committee will name a leader on 17 July if Burnham goes unopposed, or 29 August if a rival secures the 81 nominations needed to force a ballot.
The outgoing chancellor is lobbying to keep her post, telling the British Chambers of Commerce that her approach is yielding results. “I hope that whoever is chancellor in the future, whenever that future may be, sticks to what I’m doing. Because it is beginning to bear fruit, and we are seeing that investment return to the economy, that growth return to the economy, and crucially, that stability, so that businesses can plan and invest in the future,” Reeves said.
However, Burnham’s allies have indicated he will not retain Reeves. With Burnham already appointing the Blairite James Purnell as his chief of staff, his final choice of chancellor will signal whether his government tilts toward the market-friendly centre or a more interventionist left.
