LONDON: City Revolts At Prospect Of ‘Red Ed’ Running Britain’s Economy

Business Leaders Warn Miliband Appointment Could Spook Markets

Growing alarm is spreading through the City and business community over reports that Andy Burnham is considering appointing Ed Miliband as Chancellor if he succeeds Keir Starmer as Prime Minister.

Senior business figures, investors and even some Labour MPs have warned that putting the Energy Secretary in charge of the economy could trigger market turmoil, undermine confidence and push Britain further toward higher taxes and costly green policies.

The prospect of Miliband moving into No.11 has sparked fears of a sharp shift to the Left at a time when the economy remains fragile and government borrowing is already under intense scrutiny.

‘A Shudder Through Business’

Hotelier Sir Rocco Forte said the mere suggestion of Miliband becoming Chancellor had sent shockwaves through the business world.

“The idea of Ed Miliband becoming Chancellor has sent a shudder through the business community,” he said.

“He represents exactly the sort of anti-growth, high-tax, anti-enterprise thinking that has held Britain back for far too long.”

Business leaders fear Miliband would pursue more aggressive Net Zero policies, increase spending commitments and potentially raise taxes to fund them.

Markets Watching Closely

Burnham is expected to unveil his economic plans next week in an attempt to reassure investors.

He is likely to promise adherence to Rachel Reeves’ fiscal rules after previously unsettling markets by suggesting Britain should not be “in hock” to bond traders.

However, uncertainty remains over who he would choose to run the Treasury.

Reports suggest Burnham is weighing up two very different options: Ed Miliband on Labour’s Left and Wes Streeting on the party’s more moderate wing.

That split has fuelled speculation that Burnham has yet to settle on a clear economic direction.

Business Figures Line Up Against Miliband

Former Pizza Express entrepreneur Hugh Osmond delivered one of the most cutting assessments.

“The two fundamental major costs of almost every product you can buy are labour and energy,” he said.

“Reeves has ruined one and Miliband the other.”

Steve Perez, founder of Global Brands, said Miliband’s previous political platform had already been rejected by voters.

“His manifesto was comprehensively rejected by the electorate and Andy Burnham would be mad to appoint him.”

Advertising executive Sir Martin Sorrell warned a Miliband appointment would signal “a further lurch to the Left and an expensive embrace of Net Zero.”

Neil Wilson of Saxo Bank predicted financial markets would react very differently depending on Burnham’s choice.

“Gilt markets will be happy if it's Streeting, perturbed if it's Miliband,” he said.

Labour Unease Behind The Scenes

Concern is not limited to the business community.

Even some Labour MPs backing Burnham’s leadership bid are privately opposing the idea.

One supporter said appointing Miliband would risk alienating both business leaders and trade unions before a Burnham government had even begun.

“If Andy puts Miliband in as Chancellor he risks getting off on the wrong foot with business and the unions and we cannot afford that,” the MP said.

Another source close to Burnham warned that markets and media would “make mincemeat” of such a decision.

Unions Also Sound The Alarm

In a striking twist, some of Labour’s biggest union allies have joined the criticism.

Unite general secretary Sharon Graham dismissed the idea outright.

“It’s been floated that Ed Miliband would be Chancellor. That would be a noose around the neck of what we need to do on jobs.”

GMB leader Gary Smith has also repeatedly criticised Miliband’s opposition to expanded North Sea drilling, describing the policy as “economic madness” that threatens thousands of jobs.

Pension Triple Lock Under Threat?

Meanwhile, fresh questions have emerged about Burnham’s wider economic plans.

Reports suggest some of his advisers believe the state pension triple lock should eventually be scrapped.

Burnham has publicly committed to Labour’s election manifesto, which promised to maintain the triple lock. However, he has not guaranteed its long-term future.

According to reports, advisers close to the Burnham camp see ending the policy as a potential way to ease pressure on public finances.

With Burnham now the overwhelming favourite to replace Starmer, investors, businesses and Labour MPs are watching closely for signs of whether he intends to govern from the centre — or move sharply left once he enters Downing Street.

SOURCE

Another Daily Mail propaganda piece.