Burnham risks Truss-style crisis over Budget decisions, ally warns

Summarised from 2 outlets · Updated 25 Oct, 15:43 · Archive

Former Bank of England chief Andy Haldane warned PM Andy Burnham risks a Liz Truss-style economic crisis unless he makes tough Budget decisions.

Andy Haldane, former chief economist at the Bank of England, has warned Prime Minister Andy Burnham that his government risks a Liz Truss-style economic crisis if it does not take tough decisions in the Budget. Haldane, who acted as an informal adviser to Burnham when he was mayor of Greater Manchester, told The Times that Britain is 'close' to being 'taxed out and maxed out in terms of borrowing'.

Haldane expressed concern that the government will deliver a 'mañana' Budget that does not 'speak to the urgency of now' and delays difficult decisions on public spending. He argued that the government has failed to acknowledge the 'precarious' fiscal position Britain is in. He urged the government to reduce taxes and bring down the size of the state to generate growth.

Haldane also criticised the government's decision to increase taxes on banks, calling the move 'penny wise, pound foolish' and saying it shows a lack of fortitude to cut public spending. While he said Burnham had the potential to be a 'great Prime Minister', he suggested the economy was his 'blind spot'. Haldane warned that Burnham's biggest risk is losing the confidence of financial markets, comparing his situation to Liz Truss, the former Conservative prime minister whose mini-Budget in 2022 caused the pound to decline and mortgage rates to spike.

How it is being reported

• Blow To Burnham As Ally Warns PM Risks Liz Truss-Style Crisis If He Avoids Tough ChoicesAndy Burnham and Liz Truss Andy Burnham risks a Liz Truss -style crisis unless he takes risks with his upcoming Budget , according to a prominent ally. Andy Haldane, former chief economist at the Bank of England, told The Times he thought Britain was “close to being taxed out and maxed out in terms of borrowing”. He said he fears the government will deliver a “mañana Budget” on Wednesday which put off difficult decisions and will not “speak to the urgency of now”. Haldane claimed ministers do not understand how “precarious” the current situation is for the country right now. Haldane, who…HuffPost UK · 25 Oct, 15:23
• Burnham's ex-adviser says he risks Truss-style crisis if public spending is not slashed - and calls Budget plans for a £2bn tax raid on banks 'delusional'Andy Haldane cautioned the PM his Government risked delivering a 'manana' Autumn Budget which does not 'speak to the urgency of now' and delays decisions on public spending.Daily Mail · 24 Oct, 00:53

In this story: Andy Haldane · Andy Burnham · Liz Truss · Bank of England · Britain · Greater Manchester

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