Key facts
- Andy Burnham has brought in economists Andy Haldane, Richard Hughes, and Jim O’Neill to advise him.
- The move is seen as an attempt to signal fiscal credibility ahead of a potential leadership bid.
- Burnham is also contesting the Makerfield byelection, with a possible return to parliament on Friday.
- If elected, Burnham is expected to challenge Keir Starmer for the Labour leadership.
- Starmer's allies have cautioned against a leadership contest due to potential economic destabilization.
Andy Burnham, the Mayor of Greater Manchester, has appointed three prominent economists to his advisory team as he reportedly prepares for a potential return to parliament and a challenge to the current Labour leader, Keir Starmer. The economists include Andy Haldane, former chief economist at the Bank of England; Richard Hughes, former chair of the Office for Budget Responsibility; and Jim O’Neill, a crossbench peer and former Treasury minister.
The move is interpreted as an effort by Burnham to signal fiscal credibility to financial markets ahead of a potential leadership bid. Burnham is set to contest the Makerfield byelection, with his return to parliament anticipated as early as Friday. Should he win the seat, he is expected to attempt to persuade Starmer to step down, potentially triggering a leadership contest.
Allies of Starmer have cautioned that a leadership battle could destabilize the country and its economy. Some within the Labour party have also questioned whether Burnham has adequately addressed market concerns, particularly following past remarks about reducing reliance on bond trader reactions. Burnham has since clarified his previous statements, asserting that his intention was to regain control of fundamental economic drivers, not to disregard market stability.
He has also stated his intention to adhere to the fiscal rules previously set by Chancellor Rachel Reeves. Speculation also surrounds Burnham's potential appointments to key economic roles, such as chancellor, with names like Ed Miliband, John Healey, and Wes Streeting being mentioned.
Haldane, currently CEO of the Royal Society of Arts, has previously advocated against interest rate hikes and proposed war bonds for defense funding. Hughes, who previously worked at the OBR, is now a senior economic adviser at Taula Capital. O’Neill, known for his work on the Northern Powerhouse initiative, has recently outlined a plan for economic revitalization.