Andy Burnham has enlisted three prominent economists to advise him as he prepares for a potential return to parliament and a challenge to Prime Minister Keir Starmer. The Greater Manchester mayor, who won the Makerfield byelection with a large majority on Friday, is seeking to reassure financial markets about his economic credibility.
Economic Advisers
Burnham is understood to be receiving guidance from 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 who worked on George Osborne's Northern Powerhouse initiative. The extent of their involvement in drafting economic plans remains unclear, but the move signals Burnham's intent to present a fiscally responsible image.
Leadership Challenge
Following his byelection victory, Burnham is expected to attempt to oust Starmer within weeks, initially by persuading him to step down. If Starmer refuses to set a departure date, Burnham may launch or join a leadership contest, with his team confident of securing support from more than the required 81 MPs. However, allies of Starmer warn that a leadership battle could destabilize the country and economy.
Market Reactions
No 10 and the Treasury will monitor bond markets closely for signs of investor concern over higher borrowing or economic instability linked to a potential change in leadership. Burnham has previously suggested that the UK should be less reliant on bond trader reactions, but he has since clarified those remarks, stating they were misinterpreted. He has also affirmed no plans to alter the fiscal rules Chancellor Rachel Reeves committed to before the last election.
Potential Chancellor Candidates
Speculation is rife about who Burnham might appoint as chancellor if he becomes prime minister. Names mentioned include Energy Secretary Ed Miliband, former Defence Secretary John Healey, and leadership rival Wes Streeting.
Haldane, who is chief executive of the Royal Society of Arts, earlier this year urged the Bank of England against interest rate rises and proposed war bonds for defence funding. Hughes, who resigned after the OBR accidentally released Reeves's budget early, now works as a senior economic adviser at Taula Capital. O'Neill recently outlined a blueprint for economic growth, endorsing bond and equity market rallies, a construction boom, and higher business and consumer confidence.
Haldane, O'Neill, and Hughes did not immediately respond to requests for comment.
