Andy Burnham, a leading contender for Prime Minister, is scheduled to deliver a significant economic speech next week. The address aims to alleviate market concerns, particularly regarding the potential appointment of Ed Miliband as Chancellor. Julian Morse, co-chief executive of Cavendish, warned that markets would react more negatively to Miliband than to Wes Streeting, another potential candidate.
Morse cited Miliband's strong push for net zero policies and his actions as energy minister, such as blocking new exploration projects and resisting easing North Sea drilling licenses, as reasons for market apprehension. He noted that the UK's aggressive pursuit of net zero puts it at a disadvantage compared to major polluters like the US and China, costing money and tax receipts.
In contrast, Morse suggested that Streeting's economic proposals, which include equalizing capital gains taxes with income taxes and fast-tracking infrastructure projects, would be better received by the City. Streeting has also criticized Miliband's 2030 net-zero deadline as an "arbitrary target."
Burnham, who is expected to pursue a more left-wing economic agenda, is reportedly seeking advice from economic experts, including former Bank of England economist Andy Haldane and ex-OBR chief Richard Hughes. He is expected to reiterate his commitment to Rachel Reeves' fiscal rules in his upcoming speech, signaling a cautious approach to public finances.
