Ed Miliband’s planned announcement of a £400 million UK contribution to a global rainforest conservation initiative was postponed amid internal party tensions and concerns over political optics during defence spending disputes. The energy secretary was set to unveil the UK’s support for the Tropical Forests Forever Fund, a $125 billion initiative intended to protect rainforests through a combination of public and private funding. However, the move was halted amid resistance from senior officials, including Chancellor Rachel Reeves, who expressed apprehension about the timing in light of ongoing defence budget negotiations.

The Tropical Forests Forever Fund aims to secure $25 billion from wealthy nations and philanthropists, supplemented by $100 billion in private sector investments, to support global forest conservation efforts. The UK’s contribution would have been drawn from overseas expenditure, distinct from defence allocations, but Treasury officials raised concerns about how the announcement might be perceived amid heightened scrutiny of defence spending.

Sources close to Miliband indicated that he was not formally blocked from making the announcement but chose to delay it, reflecting sensitivities during a period marked by budgetary strain and political negotiations. The postponement followed a fraught process in which Sir Keir Starmer instructed government departments to reduce capital budgets to accommodate increased defence spending, a move that led to the resignation of John Healey as defence secretary.

Amid speculation that the Department for Energy Security and Net Zero’s budget might face cuts to support defence priorities, associates of Miliband dismissed such claims as unfounded, emphasizing his acceptance of Starmer’s overall spending direction. They rejected assertions that Miliband had impeded the defence investment plan.

Miliband is currently the leading contender to become chancellor under Andy Burnham, who is poised to form a government and intends to announce his economic strategy before naming his treasury chief. He competes with Home Secretary Shabana Mahmood for the role, while former Health Secretary Wes Streeting is thought unlikely to be selected. The energy secretary has faced opposition from major trade unions and senior figures allied with Burnham, with concerns raised about his approach to job creation and his stance against new oil and gas licenses in the North Sea.

Unite union leader Sharon Graham warned that Miliband’s policies could constrain employment growth, while the GMB union echoed worries about his environmental positions. Burnham’s supporters have voiced apprehension that Miliband’s “ideological” net zero agenda might undermine market confidence. Miliband’s defenders counter these criticisms, portraying him as experienced and equipped to revitalize the economy.

Labour’s deputy leader Lucy Powell described Miliband as a capable prospective chancellor but suggested that discussions about cabinet appointments were distracting from the party’s broader objectives. She emphasized the importance of focusing on Labour’s agenda and pledged support for Burnham’s commitment to fiscal responsibility, to be outlined in a forthcoming speech.

Powell also highlighted efforts to reform the party’s culture after a period marked by internal divisions and anonymous briefings during Starmer’s leadership. She stressed the aim of fostering a collaborative environment where appointments are based on merit rather than factional loyalties.

Miliband has been instrumental in developing economic policies for Burnham and was reportedly the first minister to privately call for Starmer’s resignation. Burnham is expected to enter 10 Downing Street on July 20, shortly after the World Cup final, setting the stage for the next phase of Labour’s leadership and policy direction.