UK's new Prime Minister-elect Burnham is about to take office—can he lead the UK into a new political and economic paradigm?

‘And in doing more, build a new economy where we put life’s essentials back under stronger public control to make them affordable to you again. Re-industrialising Britain, using public procurement to back British industry.’ ‘In doing more, build a new economy where we place life’s essentials back under stronger public control, making them affordable to you once again. Re-industrialising Britain, using public procurement to support British industry.’ His vision is commendable—for instance, making these services more affordable. Yet the UK’s core problem is not privatisation versus nationalisation, but excessive taxation—taxes amounting to 40.8% of GDP. Under such a heavy tax burden, no company has sufficient capital left to invest in R&D, improve efficiency, or reduce costs. The so-called ‘use of public procurement’ to support British industry—for example, the nationalisation of the敬业 steelworks—means the steel plant will henceforth be state-owned. After the UK government acquired it for £0, the plant began losing £1.3 million per day, accumulating total losses of £670 million. It would have been wiser to cut taxes for these companies instead—and even dismantle the steel plant, allowing firms to use cheaper imported steel. ‘But I can do something to give people some breathing space now, some help with the cost of living. And I will set out some of those measures starting tomorrow, including how we pay for them.’ ‘But I can do something right now to give people some breathing space—and some relief on the cost of living. Starting tomorrow, I will lay out some of those measures, including how we’ll fund them.’ The reason prices are so high in the UK today is precisely because of excessive political interference and prohibitively high business costs—causing countless small businesses to collapse, even farms going bust. As a result, food prices have already soared to absurd levels. If this new UK Prime Minister, citing high prices as justification, imposes further top-down interventions, UK prices still have room to rise. What’s needed now is tax cuts for farmers, tax cuts for factories, and cheap imported raw materials for industry. ‘That is the fair and sustainable way to bring the welfare bill down, to meet our fiscal rules, and to honour our commitments on defence to our international partners.’

UK Prime Minister-elect Burnham says economic growth cannot be left entirely to market self-regulation—how should we interpret his economic proposals?

Andy Burnham has vowed to empower local government to take ‘greater public control’ over energy, housing, water and transport as councils are set to be handed greater powers as part of sweeping economic and political reform. In a speech on Monday setting out his 10-year vision to raise living standards, the likely next Prime Minister said he would oversee the ‘biggest change in our lifetimes to the way the country is run’. He insisted policies would be in line with manifesto commitments, in what appeared to be a bid to shut down speculation over a possible General Election being called. Despite pledging a total overhaul of national and local government, Burnham said he would keep to the current fiscal rules and run the country based on ‘sound public finances’, with his economic reforms to focus on devolution and regulation of utilities. ‘Westminster and Whitehall are set up for conflict, but they require radical change if the country is to get back on track,’ Burnham said. Andy Burnham has pledged to empower local governments to exercise ‘greater public control’ over energy, housing, water, and transport. As part of sweeping economic and political reform, local councils will be granted significantly expanded authority.

Burnham’s ‘Breathing Space’ Claims Contradicted by Future Bank Rate Rise Prospects

3 days ago

Bank of England hints at rate hikes as oil exceeds $100/barrel and weather shocks raise food prices. UK Prime Minister Burnham faces inflation risks impacting energy and agricultural sectors.

theguardian

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