Skip to content
Friday 14 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE
MorningWire

European business, markets and politics

FTSE 100
10,772.67
-0.56%
DAX
26,299.74
0.00%
CAC 40
8,650.56
0.00%
STOXX 50
6,545.47
0.00%
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
More
GermanyFranceBankingAIEnergyFintechPropertyCapital Markets
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
  • DE
Tuesday 07 July 2026 6:01 am  |  Updated:  Monday 06 July 2026 6:15 pm

Burnham’s encounter with political and economic reality will be brutal when it comes

By: Christian May

Editor-in-Chief

Add as a preferred source on Google
Andy Burnham discussing capital gains tax increase during a press conference, highlighting potential economic impacts
Burnham has pledged to spread economic growth beyond London

This is turning out to be a very strange summer indeed, and I’m not referring to the football. This week, a Prime Minister with no power will attend the NATO summit in Ankara and next week, a Chancellor with just days left in the job will tell a City crowd at the Mansion House banquet all about a dying government’s plans for financial services.

While these place-holding office-holders play the role, real power is building around Andy Burnham, a man pretending not to have made any decisions about who will be in his cabinet. In public, Burnham tells us that he’ll abandon “point scoring” and that he’ll “do politics differently.”

I’m old enough to remember David Cameron promising exactly the same thing. But guess what? Politics is a fight. It’s a constant battle – and so it should be. Arguing, probing, skirmishing and attacking is what forces politicians to defend their decisions and advocate for what they believe. Burnham might lay down his weapons but his opponents won’t.

The battle isn’t simply between different parties, either. Keeping a cabinet and several hundred MPs in harmony is often the biggest battle of all, but Burnham pledges an “inclusive” government, representing all wings of his party from the far-left to the neo-Blairite. Good luck with that!

His first big test? The Autumn Budget

The PM-in-waiting is currently luxuriating under very little scrutiny and with everyone around him eager for a role in his new administration. He’s been a professional politician his entire life and witnessed the Blair/Brown death struggle up close. He cannot possibly believe that he alone will tame the political instincts that have shaped Westminster for centuries and lead a government that runs on consensus and good will. He is, therefore, simply saying what he feels the public wishes to hear.

The laws of politics will reassert themselves the moment he encounters his first band of rebel MPs, holding out against a piece of welfare reform or standing opposed to some changes on immigration policy. The laws of economics are equally unforgiving. Confidence in key sectors has crumbled, growth is spluttering, the tax burden is too high, the bond market is nervous and he’s drawn up an expensive wish list of ambitious policies.

He will doubtless enjoy September days at Chequers and he’ll have a good party conference season, but then the nights will draw in and he will have to face his first major encounter with political and economic reality: the Autumn Budget.

Read more

Silly season is upon us but politics will get serious soon enough

Count Binface

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Politics
  • Business
  • Economics
  • Opinion

People & Organisations

  • andy burnham
  • Autumn Budget
  • Keir Starmer
  • Labour Party
  • Rachel Reeves
  • UK economy
  • UK Government

Trending Articles

  • Revolut takes flight with launch of new airport lounges

  • It’s not just Jason Arday, most of sociology is a scam

  • IT consultant ordered to pay £50,000 after being accused of stealing Soho House members’ personal details

  • Grandparents fund university degrees to avoid inheritance tax net

  • Five-star Mayfair hotel hit with HMRC winding-up petition

More from Morning Wire

  • Silly season is upon us but politics will get serious soon enough

    Politics
    Count Binface
  • Brazen Burnham should call an election and put his ten year plan to the voters

    Politics
    Andy Burnham speaking to media outside 10 Downing Street with a crowd gathered.
  • If Burnham wants growth he’ll have to save the City

    Business
    London Stock Exchange building exterior on a busy trading day with bustling city atmosphere and iconic architecture
  • Burnham accused of imposing ‘top–down’ devolution 

    Politics
    Andy Burnham speaking at 10 NORTH event, gesturing while discussing devolution plan.
  • Shabana Mahmood set to be named Chancellor by Burnham

    Politics
    Shabana Mahmood, potential Chancellor, in a professional setting, poised and confident, reflecting leadership qualities
  •  Burnham to unveil new cost of living measures on UK tour

    Politics
    Andy Burnham, Mayor of Greater Manchester, speaking outdoors with a lapel microphone on his suit jacket.
  • Reeves: Burnham will face ‘shocks and challenges’ as Prime Minister

    Politics
    Rachel Reeves delivering a speech at a press event, wearing a navy blazer and standing in front of a backdrop with logos.
  • Rolls-Royce shares rise as Burnham pledges investment in British defence

    Politics
    Andy Burnham speaking at a press conference, wearing a suit and tie, addressing current political issues in Manchester.
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Business

  • Markets
  • Banking
  • Technology
  • Energy
  • Property
  • Fintech

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook