Burnham turns to ex-OBR and Bank of England chiefs on economic policy
Andy Burnham has turned to a crop of heavyweight economic advisers, including a former Bank of England economist and the ex-head of the Office for Budget Responsibility, in a bid to bolster his economic credentials ahead of a potential Labour leadership challenge, it has been reported.
The new MP for Makerfield has sought advice from several top economists including Richard Hughes, the former OBR chair who was forced to resign over the leaked Budget last year, and ex-Bank of England chief economist Andy Haldane.
Jim O’Neill, a Treasury minister under David Cameron who helped drive the “Northern Powerhouse” reforms around 10 years ago, has also been called upon by Burnham to advise on economic policy.
The advice from top economists, as reported by the Financial Times and Bloomberg, reflects a wider push from Burnham to win credibility with financial markets after he was criticised for claiming the government was “in hock” to the bond markets.
On his campaign trail, Burnham pledged to retain Rachel Reeves’ fiscal rules which include putting the current budget on course to be in balance or surplus in three years.
He has also hinted at reforming property taxes and taken aim at the rise in employers’ national insurance contributions, which has contributed to a rise in unemployment.
Westminster is now waiting for the launch of Burnham’s possible leadership bid after winning over half of the vote share in Makerfield.
At the same time, a Manchester mayoralty by-election will now be triggered after his resignation from the position upon his return to parliament.
Burnham ‘appeals to party over Brits’
Over 90 Labour MPs have called for Starmer to resign although the Prime Minister has insisted he would join any leadership contest that is launched. Starmer won the support of a similar amount of MPs although polls show that Burnham would get the backing of Labour members in a leadership contest.
Upon winning the Makerfield by-election, Burnham said there would be “no second chance” for the party as he called for “change”.
Former health secretary Wes Streeting has also said he would enter a leadership race and claimed he has won the necessary number of 81 MPs to support him to challenge the Prime Minister.
Streeting is seen as a less likely successor to Starmer given his unpopularity among party activists.
He took aim at Burnham’s economics policymaking in a speech this week as he appeared to accuse the former Manchester mayor of failing to draw up credible policy pledges.
“There is a risk that a Labour leadership contest becomes a Dutch auction of the most expensive and popular pledges to appeal to the party faithful at the expense of the British people – not on my watch,” Streeting said.
Haldane, Hughes and Burnham did not immediately respond to a request for comment.