UK Labour unions press Burnham to block Miliband Treasury appointment

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Labour unions oppose Miliband Treasury

Highlights

Unite’s Sharon Graham and GMB’s Gary Smith intensify opposition to Ed Miliband’s potential chancellorship, citing job losses from his North Sea energy policy.
Alternative Labour candidates for chancellor include Shabana Mahmood and Wes Streeting, with internal negotiations ongoing and no cabinet jobs yet formally offered.
Burnham faces immediate economic decisions on Jackdaw and Rosebank oilfields and may devolve business rates and some income tax to regional authorities if he becomes prime minister.

Union opposition shapes Treasury contest

As reported by the Financial Times, two of Labour’s biggest union backers are stepping up efforts to dissuade Burnham from appointing Miliband as chancellor, with Unite’s Sharon Graham and GMB’s Gary Smith both backing an alternative.

The unions’ main objection centres on Miliband’s approach to North Sea energy policy. Senior union figures argue his strong focus on Net Zero has damaged jobs in oil and gas, and one senior official says there are ongoing discussions aimed at stopping his appointment through a GMB-Unite alliance.

Smith meets Burnham on Wednesday and is expected to make his position clear. Earlier this month, he describes the impact of net zero policies on the North Sea oil and gas industries as "shameful" and "economic madness", while Graham says at the weekend that Miliband as chancellor would put a "noose around the neck" of job creation.

Miliband remains one of the frontrunners for the role. Supporters around Burnham argue he has serious Treasury experience, has been an effective secretary of state and is closely aligned with Burnham’s agenda, even as some figures in the City of London view him as likely to pursue a higher-spending leftwing approach.

Alternative candidates and policy choices

Other Labour figures are also being discussed for the Treasury post, including Shabana Mahmood, who some senior party members see as undervalued in the contest. One cabinet member says Mahmood is open to the role but is not actively pushing for it, while her spokesperson declines to comment on speculation and Burnham’s team says no cabinet jobs have been offered.

Wes Streeting, the former health secretary, also wants the chancellorship after dropping his own leadership ambitions earlier this week. One Labour figure says Streeting is told he would receive due consideration for the job if he backed Burnham, while other compromise options include Yvette Cooper, Pat McFadden and Jonathan Reynolds.

The decision on the chancellorship comes alongside major energy and economic choices facing Burnham. One of his first calls if he becomes prime minister later this month is whether to approve the Jackdaw gasfield and Rosebank oilfield after updated guidance following a 2024 Supreme Court ruling on emissions in environmental assessments, while adviser Lord Jim O’Neill says Burnham’s economic agenda is likely to include devolving business rates and potentially some aspects of income tax to regional bodies.

Our earlier coverage of the Dallas Fed survey on U.S. oil production expectations noted that producers anticipate a modest 2% to 3% rise in output at current prices as activity accelerates, even while input costs climb. We also highlighted how geopolitical risk and regulatory costs are complicating long-term planning, keeping executives cautious about the outlook despite stronger near-term momentum.

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