Prime Minister Andy Burnham has affirmed his view that the UK is excessively vulnerable to global shocks. He defended remarks made last year about the UK needing to be less "in hock" to bond markets, stating his comments were deliberately misinterpreted by former Prime Minister Keir Starmer and his advisers.
Burnham clarified that his objective was to foster a more resilient economy, not to advocate for increased borrowing and spending. He explained that his intention was to highlight the UK's susceptibility to global price fluctuations, particularly as government borrowing has recently risen due to increased energy prices amid the ongoing Iran war deadlock.
Last month, the UK government borrowed £18.3 billion, a figure higher than anticipated, which adds pressure on Chancellor John Healey as he prepares for the upcoming budget. Burnham stated that he wants to build an economy that is significantly less vulnerable, arguing for a "much more streamlined, productive state."
He dismissed criticism from Starmer and then-Chancellor Rachel Reeves as unjustified. Burnham is scheduled to address his first Labour conference as prime minister in Liverpool next Tuesday, where he plans to outline his political vision, described as a departure from the economic and political mainstream of the past 40 years.
Burnham has previously indicated that his budget would adhere to the fiscal rules on debt and borrowing established under Reeves, while also aiming to alleviate cost of living pressures for constituents.