Burnham urged to clarify tax plans to avoid bond market concerns
10 reported
According to a single-source report from The Guardian, Andy Burnham’s victory in the Makerfield byelection did not trigger the bond market rout that some had warned about, but analysts suggest he should set clear expectations on tax and spending as he moves toward the premiership. The yield on UK government bonds rose modestly on Friday, partly because a Burnham win was already priced in and because he promised to stick by existing budget rules. Better-than-expected inflation figures earlier in the week also eased market concerns about the Iran war’s impact on the cost of living. The article notes that Burnham’s every pronouncement, and that of his future chancellor, will be watched intently by markets. It reports that Burnham has mused about helping Waspi women, criticized the rise in employer national insurance contributions, and expressed interest in halving VAT for the pub industry, while also pledging to maintain the pensions triple lock and not raise income tax or NICs on workers. The article states that Burnham faces a backdrop of worse-than-expected public borrowing figures, tight spending plans, and a looming row over defence funding after John Healey resigned over a decision to allocate £13bn of the £18bn he had asked for by 2030.
What’s reported
Andy Burnham’s victory in the Makerfield byelection did not cause a bond market rout.
The yield on UK government bonds rose modestly on Friday.
Better-than-expected inflation figures earlier in the week eased market concerns about the Iran war’s impact on the cost of living.
Burnham promised to stick by existing budget rules.
Burnham mused about helping Waspi women but the idea was rescinded.
Burnham said he was not a fan of the rise in employer national insurance contributions, which brings in £25bn a year.
Burnham said he would like to halve VAT for the pub industry.
Burnham pledged to maintain the pensions triple lock and not raise income tax or NICs on workers.
Public borrowing figures are worse than expected.
John Healey resigned over a decision to allocate £13bn of the £18bn he had asked for by 2030 for defence investment.
Key figures
Andy Burnham, Labour leadership candidate and Makerfield byelection winner
Rachel Reeves, former chancellor
John Healey, resigned over defence funding decision
Ruth Curtice, Resolution Foundation analyst
Sources: The Guardian
