Top economists shun Burnham over wealth taxes

Economists who were previously advising Andy Burnham have declined to join his government over disagreements regarding potential wealth taxes, according to recent reports. Lord Jim O’Neill, a former Goldman Sachs executive, is reportedly engaged in ongoing discussions with Burnham for a possible position; however, he has not joined due to his opposition to a proposed wealth tax and the prime minister's lack of opposition to the policy.

O’Neill is also reportedly concerned about maintaining control over his business interests and shareholdings in financial groups.

Before the Makerfield by-election, it was widely speculated that O’Neill, former Bank of England chief economist Andy Haldane, and former Office for Budget Responsibility chair Richard Hughes were advising the Prime Minister. However, City AM revealed that none of these three advisers had taken positions in the government a month after the new premiership began, even with an Autumn Budget already announced. This has left Burnham lacking the economic expertise that his supporters had praised him for before he became an MP.

Reports of the three advisers' close relationship with Burnham were believed to have helped alleviate investors' concerns ahead of his premiership. It is now reported that Burnham has retained Rachel Reeves’ adviser Neil Amin-Smith to assist him with economic policy. The Labour front-runner's difficulties in securing a strong economic team have been exacerbated by Labour backbenchers urging the Prime Minister to raise taxes on the wealthy.

Many MPs who have pledged support for Burnham have called for a 2% tax on assets over £10 million, arguing that it could raise "tens of billions" of pounds.