Burnham calls for UK to abandon ‘40 years of neoliberalism’
Labour leadership hopeful Andy Burnham has called for the UK to abandon “40 years of neoliberalism” as he claimed that Westminster politics had failed northern communities.
In what is being widely interpreted as Burnham’s Labour leadership launch speech, he said that the upcoming by-election in Makerfield was a chance for a “much bigger debate about how politics needs to change”.
Burnham’s speech at a local government conference came as he looks set to become Labour’s candidate to stand in a seat that was previously held by former minister and Keir Starmer ally Josh Simons, who quit parliament to pave the way for the Manchester mayor’s return.
Burnham told the audience: “My core argument is this: Britain, if you look at the last 40 years…has been on the wrong path.
“40 years on the wrong path, a path that has damaged communities across the north.”
Referring to what he described as de-industralisation in the north, privatisation and deregulation and “austerity” in the 2010s, he said: “It all adds up to 40 years of neoliberalism that have not been kind to the north of England.
“That system has siphoned wealth out of those places.”
A glimpse of Burnham’s policies
Burnham’s speech touched on various areas of economic policymaking, including making rent more “affordable”, which could be seen as his endorsement of price cap controls being introduced. He has spoken recently about the need to nationalise large swathes of the economy.
His speech primarily focused on devolution, claiming that high economic growth in Manchester during his mayoralty has “proven” that local authorities should be given greater tax and spending powers.
“It depends upon maximum devolution of power and resources from national government to local government,” he said.
“We cannot go on with a bloated national state and a malnourished local one.”
He also said he “respects” the 2016 Brexit vote and would not propose a return to the EU despite having previously argued in favour of rejoining the bloc, along with former health secretary Wes Streeting. Burnham said that while Brexit has been “damaging” for the country he doesn’t want to reopen the debate.
Burnham is likely to find out this week whether Labour members back him to stand as a candidate in the by-election that will be hotly contested by Nigel Farage’s Reform UK and other parties.
His selection as the Labour candidate will cause more drama; a victory in the by election would all but guarantee his place as Labour leader while a defeat will throw the spotlight back on other potential candidates including Ed Miliband and Angela Rayner.
Bond traders and City analysts have raised concern about a Burnham premiership, with Deutsche Bank analysts warning that markets would “fear higher fiscal spending” and further push up government borrowing costs.
Burnham challenges Starmer on economics
Keir Starmer said at the party’s headquarters earlier on Monday that the days since brutal local election results had “not been easy” for activists but added the government had to “build up urgency” and add “a bit more hope in there”.
“I am focused on the job that I was asked to do, which is to serve my country and to carry out my duties as Prime Minister of this country,” he said.
The Prime Minister added that he would support any Labour candidate in a “fight” with Reform.
“Whoever they are, I am going to support them one hundred per cent and I want every member, everyone in our movement to support them.”
Burnham’s speech came as the International Monetary Fund sent the current government – and any future Prime Minister – some stark warnings on the heavy tax burden and vulnerabilities of high public debt levels.
The Office for National Statistics separately said in an analysis of the UK economy that government expenditure as a share of GDP had increased by around 10 percentage points over the last 30 years, with welfare payments inflating the size of the state.