Labour Deputy Leader Lucy Powell has expressed support for Ed Miliband as a potential Chancellor, despite fears of a borrowing bonanza. In an interview with the BBC's Sunday With Laura Kuenssberg, Powell stated, “Yes I do actually,” when asked if Miliband would be good at running the Treasury. However, she described the conversation as “slightly distracting,” emphasizing that all Labour figures have important roles to play.
Miliband's Potential Chancellorship
Miliband, currently Energy Secretary, is reportedly prepared to approve drilling for more gas at the Jackdaw field in the North Sea to demonstrate flexibility on Net Zero. However, Whitehall insiders expect him to block new drilling at the Rosebank oil field. The head of Unison, Britain's biggest union, has backed Miliband, and he is said to have support from other left-wing MPs.
Pat McFadden Enters the Race
Work and Pensions Secretary Pat McFadden has emerged as a contender for the role. A senior Labour source said, “Pat is in the running. It will be between him and Ed.” Powell's comments come amid leadership speculation, with Prime Minister facing pressure.
Criticism from Business Leaders
Lord Walker, executive chairman of Iceland, warned that the business community and money markets would “freak out” if Miliband became Chancellor. He described Miliband as “too ideological” on net zero, worsening the cost-of-living crisis by raising energy bills. Lord Walker said, “He’d be a disaster. I think how we’re going about it is far too ideological. It’s putting unfair pressure on households and on bill payers in a very regressive way.”
Powell on Leadership Change
Asked about the PM's departure, Powell told the BBC: “When the manager loses the dressing room, the manager often takes the decision that it’s the time for them to go.” She added that the PM had served the party well and it was time to “move on to a new phase.”
