The MP stressed that given both Burnham and the other main leadership contender, Wes Streeting, have signed up to Reeves’ fiscal rules it “doesn’t leave much margin for significant change anyway.”
“The bond markets kind of make her bomb-proof,” another Labour MP argued, praising the incumbent chancellor’s record for steadying the economy in turbulent times.
“The big clash between Rachel and Ed is over the North Sea,” this person added, referring to the Jackdaw and Rosebank oil and gas fields whose licenses have been stymied by legal challenges. Reeves is seen as being in favor of their expansion, while Miliband puts more emphasis on the climate trade-offs. “So there’s a big fault line there. No wonder he wants her out of the way.”
Another backbencher said they believed Miliband — who has made no public comment on whether he would want the job and remains in Starmer’s cabinet — would prevent “any meaningful welfare reform.”
“Reverting back to a 2010-15 economic policy hymn-sheet” — the years when Miliband led the Labour Party to electoral defeat — would, the same MP added, “send a bad signal to entrepreneurs, industry leaders and investors. It will not end well for Labour.”
One person who’s worked closely with Miliband praised Reeves for commanding “strong support from women across the party.” They said she continued to face “rampant sexism and misogyny” as the U.K.’s first female chancellor.