STORY
Credit rating agencies are assessing the potential fiscal implications of Andy Burnham’s political rise as the Greater Manchester mayor campaigns in the Makerfield by-election. The contest is being watched closely at Westminster because a Labour victory could return Burnham to Parliament and increase speculation about a future Labour leadership challenge.
Reuters reported that Moody’s, Fitch and S&P Global were considering the possible market implications of political instability and any future shift in fiscal policy. The agencies were reported as focusing on whether any change in Labour leadership would alter the Government’s approach to borrowing, investment and debt reduction.
Burnham has said he would maintain fiscal rules, while also arguing for a more interventionist approach to economic policy. The by-election is due to take place on 18 June and is seen as one of the most politically significant parliamentary contests of the year.