Andy Burnham pledges to stick to Labour fiscal rules to reassure investors
Plans “No 10 North” body to drive regional devolution and growth
Will not name ministers like Chancellor until leadership selection ends
Sterling short bets hit $8.72bn as frontrunner seeks to calm markets
Andy Burnham, the frontrunner to become Britain's next Prime Minister, on Monday promised to stick to Labour's existing fiscal rules while unveiling plans to shift power from London to the regions, in his first major speech since emerging as the favourite to succeed Keir Starmer.
Burnham used the speech in Manchester to reassure nervous investors who have been betting heavily against the pound, committing to balance day-to-day spending with tax revenues and reduce debt as a share of output, according to a Reuters report.
"I will stick to the fiscal rules that have delivered this country stability for the first time in over 15 years," Burnham said, according to a BBC report.
The commitment marks a departure from his earlier comments suggesting the government should "get beyond this thing of being in hock to the bond markets," which he later said had been misrepresented. He has also stepped back from earlier calls for large-scale nationalisation or a near-term return to the European Union.
'No 10 North' and Devolution Agenda
Burnham announced plans for a "No 10 North", a new body tasked with driving growth "across every nation and region of the UK" as the centrepiece of his devolution agenda. He framed the proposal as part of a broader commitment to change not just who governs Britain, but how it is governed.
Additionally, the former Greater Manchester mayor also committed to a "10-year mission" to raise living standards through reindustrialisation, housing, infrastructure and utility reform, according to Reuters. He also pledged to reform public procurement to better support British jobs and industry, and proposed measures on youth employment as part of his plan to "lift Britain back up to where it should be."
Ministerial Appointments Delayed
In a move that may frustrate those eager to know who will occupy key roles, Burnham said he will not announce who will fill senior government positions including Chancellor of the Exchequer, until the end of the Labour leadership selection process, according to a Reuters report.
He is currently the only declared candidate to replace Starmer and could be installed in Downing Street within weeks, but declined to signal his preferred finance minister or other key appointments.
Who is Andy Burnham
The 56-year-old former health secretary has been dubbed the "King of the North" for his work as Greater Manchester mayor, where he brought bus services under public control and introduced free travel for 16 to 19-year-olds. He previously served in the cabinet under Gordon Brown as Chief Secretary to the Treasury, Secretary of State for Culture, Media and Sport, and Secretary of State for Health.
He returned to Westminster earlier this month after winning the Makerfield by-election with a 55 per cent share of the vote, seeing off a challenge from Nigel Farage's Reform UK party.
Political and Economic Context
Burnham's speech came amid investor jitters over the UK's political turmoil. Sterling has lost 1.7 per cent against the dollar this month, with investors holding the biggest bet against the pound since June 2015 – a short position worth $8.72 billion, according to Commodity Futures Trading Commission data cited by Reuters.
Chancellor Rachel Reeves, who is widely expected to be replaced if Burnham takes office, has publicly backed him. "I'm backing Andy. I think he'd be a great prime minister," she told the BBC. However, she urged her successor to stick to her economic approach, saying it was "beginning to bear fruit."
If he takes office, Burnham will become Britain's seventh prime minister in a decade, with many in his party believing only he has the charisma and vision to connect with voters and counter the rise of Farage's Reform UK party.
