Ed Miliband suffers major blow as Labour donor tears into his chancellor bid, calling him “out of touch.”

Dale Vince has taken aim at Ed Miliband, saying the Energy Secretary is not the right person to become Andy Burnham’s chancellor.

The criticism comes as speculation grows over who Burnham could choose to replace Rachel Reeves. Vince argued Miliband’s record in government raises serious concerns, saying many of his spending decisions show he is disconnected from economic reality.

He said Miliband has backed major taxpayer-funded projects with little chance of delivering meaningful returns, pointing to carbon capture as one example. According to Vince, the cost per job created runs into millions, making it hard to justify from both a business and climate perspective.

Vince also criticised Miliband for failing to push major energy market reforms that could help bring down household bills, saying his handling of energy policy has been inconsistent and confusing.

Instead, Vince said Wes Streeting would be a much stronger option, arguing his record as Health Secretary makes him better suited for the role.

His remarks follow similar criticism from Lord Walker, who recently warned Miliband would be a “disaster” as chancellor.

Burnham, who is expected to move into 10 Downing Street within weeks, has said he will keep his Cabinet picks under wraps until the Labour leadership contest is over.