Burnham’s in hock to the bond markets – whether he likes it or not

Andy Burnham, who once argued the country shouldn't be in debt to bond markets, found his return to the House of Commons overshadowed by the rising cost of servicing national debt. The yield on ten-year gilts reached its highest level since 2008, while the 30-year bond yield remains at a level not witnessed since 1998. The nation's debt nears £3tn, with spending out of control and borrowing over £130bn annually just for interest payments.

Chancellor John Healey appeared anxious beside the new Prime Minister, and Burnham's email to Treasury staff seeking ideas for his first Budget added to the sense of uncertainty.

Despite Burnham's promise of more public spending, higher taxes, and a new "triple helix approach" to economic development, economists predict growth will dwindle in the second half of the year. The proposed "overnight visitor levy" won't help lower regional taxes, and Burnham's optimism might not be enough to revive the economy. The focus should be on restoring private sector confidence, along with a strategy to curb spending and lighten the tax burden.