Former Treasury Adviser Backs Ed Miliband for Chancellor in Potential Burnham Government

A former senior Treasury adviser has urged Andy Burnham to appoint Energy Secretary Ed Miliband as Chancellor if he becomes the UK's next prime minister, arguing that Miliband has the experience, leadership, and long-term vision needed to drive economic growth.

Nicholas Stern, a respected economist and professor at the London School of Economics, said Miliband is uniquely positioned to lead the country's economic strategy through increased investment in infrastructure, clean energy, and public services.

Burnham, who is seeking to form a new government, has not yet announced who would oversee the Treasury. Several senior Labour figures—including Ed Miliband, Health Secretary Wes Streeting, and Home Secretary Shabana Mahmood—have all been mentioned as possible candidates to replace Rachel Reeves.

Stern, who previously served as a senior Treasury official during Gordon Brown's government and later became Chief Economist at the World Bank, described Miliband as both "competent" and "strategic." He said Britain needs decisive leadership that is prepared to invest more heavily in modern infrastructure, renewable energy, transport, and urban development.

According to Stern, boosting public investment by several percentage points of national income would help create the conditions for stronger private-sector growth while improving skills and opportunities for workers across the country.

The economist also defended Miliband's position on North Sea oil and gas, supporting the government's pause on issuing new drilling licences. Stern argued that continuing to invest heavily in ageing fossil fuel industries would distract from preparing the economy for future technologies.

Instead, he believes regions historically dependent on oil and gas—such as Aberdeen—should receive significant investment to help workers transition into emerging clean-energy industries.

Stern also stressed that Britain's international reputation on climate policy remains important. He warned that weakening commitments to reducing emissions could undermine the UK's credibility and influence in global climate negotiations.

Reflecting on his time working alongside Miliband in the Treasury during the early 2000s, Stern said he witnessed firsthand Miliband's understanding of economic policy and industrial strategy, describing him as energetic and capable.

Support for Miliband has also come from other figures within Labour. Deputy Leader Lucy Powell recently said he would make an effective Chancellor.

Meanwhile, Josh Ryan-Collins, Professor of Economics and Finance at University College London's Institute for Innovation and Public Purpose, argued that criticism of Miliband's net-zero policies misses the bigger issue. He said the real challenge is ensuring the Treasury provides enough support for workers and communities affected by the transition to a greener economy.

Ryan-Collins believes a Chancellor focused on green investment could help strengthen the UK's long-term economic stability while creating high-quality jobs, particularly in regions that have struggled with economic decline.

As speculation continues over who would lead the Treasury in a potential Burnham administration, economists backing Miliband say his combination of economic experience and commitment to green investment could shape a new direction for Britain's economy.