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Burnham Administration Yet to Finalise Key Economic Advisory Roles

Weeks after Andy Burnham became Prime Minister, several highly-regarded economists previously linked to his team have not taken up official roles, leading to renewed market nervousness.

  • Former Bank of England chief economist Andy Haldane, Lord Jim O’Neill, and ex-Office for Budget Responsibility chair Richard Hughes have not landed official roles.
  • Ongoing conversations are reportedly taking place between Lord O'Neill and Burnham's team regarding a formal position.
  • The investment minister brief, previously held by Lord Jason Stockwood, remains unfilled.

Andy Burnham's allies had previously suggested that highly-regarded economists would advise his team. However, City AM understands that several prominent economic figures, including former Bank of England chief economist Andy Haldane, former Treasury minister Lord Jim O’Neill, and ex-Office for Budget Responsibility chair Richard Hughes, have not taken official roles in the new administration.

These names were reportedly circulated before Burnham's ascension to Prime Minister, which coincided with a dissipation of concerns among bond investors regarding a potentially more expansionist fiscal direction. Financial markets had largely greeted Burnham's premiership with a shrug following reports of their involvement.

A month after taking office, Prime Minister Burnham and Chancellor John Healey are reportedly still considering their approach to authoritative economic advisers. The only 'National Economic Council' assembled by Burnham in the new No 10 North consisted of mayors and ministers, rather than economists or industry leaders. Conversations are understood to be ongoing between Lord O’Neill and Burnham’s teams regarding a formal role, though no agreement has been reached.

The investment minister brief, previously held by Lord Jason Stockwood, also remains unfilled. This void is reportedly unnerving City figures. Additionally, it is unknown whether Minouche Shafik, brought in by former Prime Minister Sir Keir Starmer as Number 10’s chief economic adviser, will remain in her role, with Number 10 officials refusing to deny claims of her departure.

Why this matters: The absence of formally appointed, highly-regarded economic advisers could contribute to renewed nervousness among City investors regarding the direction of the new administration's economic policies.

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