The chancellor question is becoming the defining early test of Andy Burnham’s incoming premiership, and the trade union movement is not waiting for him to make up his mind. Andrea Egan, general secretary of Unison – Britain’s largest trade union with 1.3 million members, predominantly in the public sector – has formally endorsed Ed Miliband as Burnham’s chancellor, throwing significant union weight behind the energy secretary and against his chief rival Wes Streeting.
The intervention comes as a GMB-Unite axis is reportedly working actively to block Miliband’s appointment, with one senior union official telling the Financial Times: “There are ongoing discussions to try to stop Ed Miliband.” The public sector and private sector wings of the union movement are now pulling in opposite directions over who should control the Treasury under Britain’s incoming prime minister.
What Unison said
Egan was pointed about what she sees as the stakes. “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 National Education Union also backed Miliband on the same day. The TSSA transport union is expected to issue a similar endorsement in the coming days. Unison’s statement is designed to build public momentum toward Miliband at a moment when the decision is still being made.
The Miliband case
Miliband is seen as ideologically closer to Burnham’s platform – more sympathetic to the de-privatisation agenda, more committed to net zero and the green energy transition, and less likely to prioritise reassurance of City investors over structural economic reform. His plan to break the link between gas and electricity prices is a signature policy that puts him firmly in the reforming camp. He is also seen as more likely than Streeting to move quickly on water and energy renationalisation.
The concern from those opposing him is twofold. Some unions with North Sea oil representation – GMB prominently – are frustrated by Miliband’s refusal to approve the Jackdaw and Rosebank megafields, even though doing so would not technically break his no-new-licences pledge as the fields already hold licences. And some business and investor groups fear his approach to the economy – including his past “producers and predators” framing of corporate behaviour when Labour leader in 2011 – signals an anti-growth instinct that would unsettle markets.
The Streeting case
Streeting endorsed Burnham and stood aside from the leadership race within hours of Starmer’s resignation – a move that earned him goodwill and positioned him as a team player rather than an obstacle. His supporters argue he is better placed to reassure international investors, is more business-friendly and is unlikely to spook the bond markets in the way a Miliband appointment might.
The case against him, for much of the union movement and the Labour left, is his track record as Health Secretary. Streeting accepted £372,000 from private health donors while holding the brief and his move to take control of NHS drug pricing decisions drew accusations of a power grab that benefited US big pharma. For unions hoping Burnham will deliver a clean break from the Starmer era’s concessions to the private sector, Streeting at the Treasury would be a significant signal in the wrong direction.
The other names
Miliband and Streeting are not the only options under consideration. Shabana Mahmood, Yvette Cooper, Pat McFadden, John Healey and Jonathan Reynolds are all understood to be in contention. Rachel Reeves has publicly indicated she would like to remain, telling the British Chambers of Commerce conference: “I hope that whoever is chancellor in the future sticks to what I’m doing, because it is beginning to bear fruit.” Allies of Burnham say she will not stay.
Burnham has indicated he will give his first major policy speech as MP for Makerfield on Monday, focused on devolution and the economy. He is under growing pressure from investors, MPs, unions and business groups to clarify the Treasury appointment quickly, with many arguing it will define the entire character of his government before it has begun.
Miliband previously considered a leadership bid specifically to prevent Streeting winning the top job. Now the question of whether he ends up as chancellor may come down to whether Burnham sides with the public sector unions who back him or the private sector unions and investor community who would prefer Streeting – and what that choice says about what kind of prime minister Burnham intends to be.
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