The price Ed Miliband could pay to become Burnham’s chancellor

Ed Miliband is prepared to soften his stance on North Sea gas drilling in a move that would smooth his path to becoming chancellor in a prospective Andy Burnham government, allies say. The Energy Secretary, who has built close ties with Burnham, has been the subject of a furious briefing war since The i Paper exclusively revealed he was the frontrunner in the race to succeed Rachel Reeves, who is widely expected to be sacked in a new cabinet. His determination to pursue strict net-zero targets at all costs – and his stalling of fossil fuel projects – have come under fire from the unions and business leaders. Now allies say he is prepared to give ground and is “winning the argument” to become Burnham’s chancellor. They claim he is preparing to approve plans for the first major North Sea gas field project in almost 10 years in a bid to burnish his pro-business credentials and answer some of the concerns of the unions. A source familiar with the discussions said: “We expect it to be approved which will send an important signal.” Last weekend, Sharon Graham, the Unite general secretary, had said that Miliband as chancellor would be a “noose around the neck of job creation”. Gas field could get going ‘within months’ The Jackdaw gas field, located about 150 miles off Aberdeen, could begin production within months, supplying gas by winter if regulatory hurdles are cleared quickly, as most infrastructure is already in place. Supporters argue it could provide enough gas to heat more than one million homes and contribute around 6 per cent of future UK gas production at peak output. Industry groups and unions say approval would help sustain thousands of jobs across the North Sea supply chain. The Jackdaw decision would mark a significant policy shift for Miliband, who previously said major fossil fuel projects were incompatible with Britain’s climate goals. Environmental groups say the long-term impact on energy bills will be negligible and argue that investment should instead focus on renewables, insulation and heat pump roll-out. However, Miliband is said to still oppose drilling the Rosebank field, which mostly contains oil. The consent for Jackdaw, which was originally approved in 2022, was overturned after a legal ruling last year, which required fresh consideration of emissions created by burning extracted fossil fuels. The project is now going through a fresh approval process, with the decision expected to land on Miliband’s desk later this summer. Battle to be Burnham’s chancellor Asked whether Miliband was poised to approve the decision, a source close to the Energy Secretary said: “We cannot comment on quasi-judicial decisions.” His allies have launched a fightback as the battle to become Burnham’s chancellor was plunged into bitter infighting. On Monday, The i Paper revealed that despite Burnham only being an MP for four days and still a few weeks from Downing Street, his allies are are squabbling over who should be his chancellor. Other potential candidates include Wes Streeting, the former health secretary, Shabana Mahmood, the home secretary, Pat McFadden, the Work and Pensions Secretary, and John Healey, the former defence secretary. Miliband best placed to cut welfare, allies argue As allies of the Energy Secretary launched a counteroffensive, one Labour MP said Miliband was the only candidate capable of overseeing the cuts to the welfare budget, which many in the party now agree is necessary. “It is going to need someone from the progressive wing of the party to bring the PLP [Parliamentary Labour Party] with it on the welfare journey,” an ally said. Another Labour MP said: “He’s the best economist in the PLP.” Burnham is understood to be putting his final touches to his top team. It is understood that no final decision has been taken on who will take over from Reeves at the Treasury should Burnham become PM, as is widely expected. However, behind the scenes Miliband’s allies are growing increasingly confident. “Team Miliband are pushing back quite strongly against the Stop Ed campaign and seem to be winning the argument,” a source close to the discussions told The i Paper. In what some have interpreted as a pitch to become chancellor, Miliband hailed a boost to UK jobs and growth on Tuesday as government data revealed that private sector companies have pledged more than £100bn in investment into the green economy so far during this Parliament. Offshore wind, solar power and the electricity grid make up the bulk of the planned investment, most of it earmarked for between 2024 and 2031, and targeted at all regions of the UK. It would come from a mixture of UK companies and overseas sources including the EU and Japan.