Andy Burnham faces a stark warning from a former adviser that his government risks a Liz Truss-style economic crisis if he avoids tough decisions in his upcoming Budget. Andy Haldane, ex-chief economist at the Bank of England, told The Times that Britain is "close to being taxed out and maxed out in terms of borrowing." He fears the government will delay difficult choices, delivering a "mañana Budget" that fails to address the current urgency.
Haldane, who advised Burnham during his tenure as Greater Manchester mayor, urged the government to cut the size of the state and reduce taxes to stimulate growth. He cautioned that Burnham cannot "vibe-code" his way to economic recovery. Chancellor John Healey is set to present the first Budget of Burnham’s government on Wednesday, with plans to support poorer households with energy bills and freeze fuel duty.
Haldane praised Burnham’s potential but highlighted the economy as his "blind spot." He warned that Burnham’s biggest risk is losing the "dealing room," a reference to financial markets, similar to Liz Truss’s rapid downfall after her unfunded tax cuts plunged the country into chaos. Truss’s 49-day tenure ended when her mini-Budget caused a market meltdown, forcing the Bank of England to intervene.
Housing secretary Angela Rayner defended the government’s approach on Sky News, claiming they are managing one of the fastest-growing economies in the G7. She emphasized fiscal discipline and investment in green energy and housing, despite global economic challenges. However, Sky News host Anne McElvoy interrupted to note Germany’s economic troubles, to which Rayner reiterated the UK’s resilience.