Former Treasury chief economic adviser Lord Nicholas Stern has urged Andy Burnham to appoint Ed Miliband as Chancellor if he becomes Prime Minister later this month.
The London School of Economics professor, who served under Gordon Brown and was previously the World Bank’s chief economist, said the Energy Secretary possessed the experience and vision needed to restore confidence in the economy and boost investment.
“I think of him as competent and strategic. I would also say bold, though I am not using the language of Yes, Minister,” Lord Stern said.
He argued Britain needed to increase public investment by between two and three per cent of national income.
“That’s the kind of sums we need to invest in clean, efficient and modern infrastructure, particularly around energy, cities and transport,” he said.
Lord Stern said greater investment in green infrastructure would help unlock private sector spending while supporting long-term economic growth.
Mr Burnham has yet to announce who he would appoint as Chancellor if he succeeds Sir Keir Starmer, with Mr Miliband, Wes Streeting and Shabana Mahmood all considered possible successors to Rachel Reeves.
Lord Stern also backed the Energy Secretary’s decision to end new North Sea oil and gas drilling licences, arguing continued investment in fossil fuels would undermine Britain’s economic future.
“Investing in North Sea oil is not a strategy for the technologies of the 21st century. The key is that we have got to invest in people and places as old industries wane,” he said.
He argued cities including Aberdeen should instead receive significant investment to develop emerging industries.
Lord Stern also highlighted Mr Miliband’s international reputation, saying his experience at global climate summits would strengthen Britain’s economic strategy.
His intervention comes after Labour deputy leader Lucy Powell also suggested last month that Mr Miliband would make “a good Chancellor”.
Josh Ryan-Collins, professor of economics and finance at University College London’s Institute for Innovation and Public Purpose, also defended Mr Miliband’s economic approach.
“The problem is not ambitious climate policy per se, but the absence of willingness from the Treasury to mobilise resources to support affected workers and regions,” he said.
He argued Mr Miliband would champion green investment as “the only way to stabilise the UK economy in the long term and create the decent, well-paid jobs that the poorer regions of the country desperately need”.
However, appointing Mr Miliband as Chancellor could also risk straining relations with the US under Donald Trump.
The White House has previously criticised the Energy Secretary’s approach to Net Zero, with Mr Trump describing his policies as “ideologically driven” and “stupid”.
The US President has also repeatedly attacked Mr Miliband’s opposition to new North Sea oil and gas drilling licences.
In February, Mr Trump criticised the Energy Secretary after he signed a green cooperation agreement with California Governor Gavin Newsom.
“The UK’s got enough trouble without getting involved with Gavin Newscum,” the President said.
