‘We need to be careful’: Andy Burnham’s team keenly aware of fiscal tightrope

Andy Burnham faces a balancing act between appearing bold but not reckless when it comes to the economy. Photograph: Andy Rain/EPA View image in fullscreen Andy Burnham faces a balancing act between appearing bold but not reckless when it comes to the economy. Photograph: Andy Rain/EPA Analysis ‘We need to be careful’: Andy Burnham’s team keenly aware of fiscal tightrope Rowena Mason and Pippa Crerar Chancellor appointment and early policies avoid market meltdown but next week remains ‘moment of real peril’ UK politics live – latest updates Andy Burnham has not quite gone for Keir Starmer’s extreme caution in the run-up to entering No 10 – but he is certainly aware that any early wrong moves would cost him. Back in 2024, Starmer was criticised for his “Ming vase” strategy, where the leader treads very carefully so as not to drop a valuable metaphorical piece of china being carried across the room. He was meticulous before entering office, giving little away on policy and insisting on ironclad fiscal discipline, but things began to crack in the first few months of government over winter fuel payments, the scandal over freebies and blunders over his top team. Now Burnham has been passed the priceless vase, and those around him are acutely aware of the risks of a sudden drop. The rightwing press are desperate to portray him as a 1970s throwback, willing to jeopardise the nation’s finances in the pursuit of greater nationalisation of utilities and council housebuilding. But the new prime minister has so far shown he is aware of the balancing act he needs to pull off between appearing bold but not reckless when it comes to the economy. “We need to be very careful,” says one member of Burnham’s team. “We need to show that he’s serious about change as the public will form their opinion of him very quickly. But we have to avoid a Liz Truss-style moment: it’s almost like the markets are waiting to be spooked.” “We know that there’s a very delicate balance between capturing people’s attention and not spooking the markets. Next week is a moment of real peril for Andy and, while change is priced in, it feels like they’re teetering,” said a senior member of his team. The act of unseating a sitting Labour prime minister carried huge danger in itself, although Burnham still maintains he was not directly involved and merely picked up the baton when passed to him. He has been mindful since then of not triggering an adverse financial reaction, given the markets have for a while been calmed by Rachel Reeves’s insistence on sticking to her fiscal rules. After previously causing alarm among investors by saying governments should not be in hock to the bond markets, Burnham appeared to slightly walk back from that position during the campaign, saying he had never said gilt investors could be ignored. “Access talks focused the mind even more on that point,” says one Whitehall source. “Burnham and his people knew they had to appoint a chancellor who has credibility.” Vie