Prominent economists, who were previously reported to be advising Andy Burnham, have reportedly chosen not to join his government. This decision is attributed to disagreements over potential wealth taxes, according to reports.
Lord Jim O’Neill, a former Goldman Sachs executive, is said to be in ongoing discussions with Prime Minister Burnham regarding a potential role. However, fresh reports suggest O’Neill has not joined due to his reported dislike of a potential wealth tax and the Prime Minister's failure to rule out the policy. He is also said to want to maintain oversight of his business interests and shareholdings in financial groups.
Before the Makerfield by-election, it was widely reported that O’Neill, former Bank of England chief economist Andy Haldane, and ex-Office for Budget Responsibility chair Richard Hughes were advising Burnham. City AM reported last week that none had taken government roles a month into the new premiership, despite an Autumn Budget date already being announced. This situation has reportedly left Burnham without the economic expertise his allies highlighted before he became an MP.
Reports indicate that Burnham has retained Rachel Reeves’ adviser, Neil Amin-Smith, to assist with economic policy. The debates surrounding taxation ahead of the Budget and the reported absence of a dedicated economic advisory team are said to highlight underlying party divisions.