Andy Burnham Reverses Borrowing Plan in 1 Day as Markets Force Budget Rules Pledge
Updated
Updated · Bloomberg · May 23
Andy Burnham Reverses Borrowing Plan in 1 Day as Markets Force Budget Rules Pledge
6 articles · Updated · Bloomberg · May 23
By Monday evening, Andy Burnham had dropped a proposal to raise public borrowing and instead pledged to stick to the current government’s fiscal rules.
Markets drove the reversal within hours of a campaign video that cast Burnham as a working-class reformer ready to deliver radical change.
The abrupt U-turn underscored the gap between Burnham’s populist campaign pitch and the budget discipline demanded in Westminster.
For Britain’s prime minister-in-waiting, the episode highlighted both the appeal of his message and the constraints financial markets can impose on it.
Who really runs Britain: a prime minister or the bond market?
Is the UK caught in a policy trap that makes promises of radical change impossible?