STORY
Andy Burnham’s economic plans are facing scrutiny from investors and economists as he moves closer to the Labour leadership. Bond market figures have warned that a new prime minister would inherit constrained public finances and would face pressure if he appeared to be preparing a major increase in borrowing.
Burnham has previously spoken about the need for a different approach to economic policy, including greater investment in infrastructure and support for public ownership in some sectors. During his Makerfield campaign he also committed to Rachel Reeves’s fiscal rules and Labour’s manifesto pledge not to raise income tax, VAT or national insurance.
The choice of chancellor is expected to be one of the first signals of the direction of a Burnham Government. Names being discussed include Wes Streeting and Ed Miliband, with observers watching whether the new administration would prioritise reassurance to markets, public investment or a wider change in economic strategy.