Burnham adviser slams ‘growth in every postcode’ pledge
Andy Burnham’s pledge to deliver “growth in every postcode” will result in “wasted taxpayer money and create political problems”, according to one the PM’s most valued economic advisers. Jim O’Neill, who was tipped to take an official role in Burnham’s government, said the Prime Minister should focus on getting gilt yields to fall by 150 [...]
Jim O'Neill, a highly-regarded economic adviser to the Prime Minister, has criticized Andy Burnham's pledge to deliver "growth in every postcode" as a potentially wasteful use of taxpayer money and a source of political problems. O'Neill, who was considered for an official role in Burnham's government, urged the Prime Minister to focus on reducing gilt yields by 150 basis points to lower mortgage rates instead.
He argued that Burnham is "overpromising" and that his strategy is unlikely to succeed, warning of wasted taxpayer funds and political fallout. The rise in 10-year gilt yields from around 4.65% in April to over 5.2% recently has raised concerns about the government's fiscal buffer being used to fund tax hikes, which could further dampen growth.
Meanwhile, O'Neill also advocated for London's continued high growth, despite uncertainty over the balance between major cities, stating that the capital needs to be given a "priority" to boost national growth - an irony given Burnham's push for regional growth in the North of England.
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