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Ed Miliband is taking up Britain's seat on the World Bank board in an unusual move as he seeks to take the lead on climate finance.

The new Foreign Secretary, previously the architect of Labour's Net Zero agenda as energy secretary, will take on the role of UK Governor to the international lender.

The position is typically held by a junior minister, but Mr Miliband said he would use it to 'send an unambiguous signal' about the Government's aims.

'International development is not an add-on to British foreign policy - it is central to it,' he said.

'I want to send an unambiguous signal that this Government is serious about its global leadership on development and climate.'

Mr Miliband will attend the World Bank's annual meeting in Bangkok, Thailand in October, as well as its spring gathering in Washington DC next year.

He takes on the position at a time when the World Bank has been urged by Donald Trump's US administration to shift its focus away from climate finance.

The Foreign Secretary also faces a squeezed UK aid budget in his new role.

Ed Miliband is taking up Britain's seat on the World Bank board in an unusual move as he seeks to take the lead on climate finance

The UK has previously aimed to spend 0.7 per cent of gross national income on overseas aid, which the last Tory government reduced to 0.5 per cent to keep public debt down during the Covid pandemic.

That cut was meant to be temporary, but former prime minister Keir Starmer announced a further cut last year to 0.3 per cent of GDP, arguing this was necessary to fund an increase in defence spending.

Mr Burnham last week said his plan to cap bus fares at £2 would partly be funded by switching grants for international climate projects to repayable loans instead.

Mr Miliband's move was welcomed by Labour MPs, including Sir Keir's top ally Darren Jones.

He posted on X: 'Excellent news. It's crucial we continue to lead the debate on both mitigating and adapting to global warming.

'Pleased to see @Ed_Miliband take this so seriously as he takes on the UK Governor at @WorldBankGroup.'

World Bank president Ajay Banga said: 'The United Kingdom is a valued partner of the World Bank Group and a longstanding champion of development.

'I look forward to working closely with the Foreign Secretary to help countries create jobs, mobilise more private capital, and deliver opportunity for people.

'Together, we can help turn ambition into results where they matter most.'

The Foreign Office also announced that Kirsty McNeill will be Mr Miliband's development minister.

She previously held a role at Save the Children UK and was once an adviser to Gordon Brown when he was prime minister.