Summary
Andy Haldane, former chief economist at the Bank of England, raises significant concerns about the current government's economic strategy, warning that failure to cut public spending could lead to a crisis reminiscent of Liz Truss's brief premiership. In an interview, Haldane praises Andy Burnham, suggesting he has the potential to be a great prime minister, but criticizes the government's approach, stating they have a "blind spot" regarding economic realities. He emphasizes the urgency of making tough fiscal decisions now, rather than deferring them, as the country faces a looming cost-of-living crisis.
Chancellor John Healy, in response to Haldane's critique, asserts that the upcoming budget will reflect a commitment to supporting businesses while managing public spending. He acknowledges the delicate balance between maintaining fiscal discipline and addressing the needs of the economy, particularly in light of rising inflation and public sector pay demands. Healy aims to position the budget as part of a broader economic strategy, which includes a ten-year plan to reshape the economy, while also pushing back against accusations of being overly cautious.
The discussion highlights the tension within the Labour government as it navigates economic challenges and political expectations. With the budget approaching, the government faces scrutiny from various stakeholders, including the bond markets and its own party members, as it attempts to balance ambitious goals with fiscal responsibility. The outcome of this budget will be crucial in determining the government's credibility and Burnham's vision for the future.
Show Notes
Former Bank of England chief economist Andy Haldane, a close ally of Andy Burnham, has sounded the alarm over the upcoming budget, warning the Prime Minister can’t “vibe-code his way to growth”. Patrick joins John Healey on the road, getting a glimpse of the Chancellor’s pro-business pitch — and the bottle of HP Sauce he keeps in his briefcase. Ben takes us inside the budget, unpacking four key areas: help with business costs, support for households facing rising energy bills, a fuel duty freeze and a package to tackle youth unemployment. Can Healey’s budget deliver meaningful change, or is the big stuff still being kicked down the road? Ben reflects on his time with Andy Burnham, exploring the mayor’s ambitions, political instincts and frustration with Westminster — and what his first 100 days reveal about his wider national project.
Steven Swinford, political editor, The Times Ben Riley-Smith, political editor, The Sunday Times Patrick Maguire, chief political commentator, The Times
Producers: Euan Dawtrey, Harry Kitson Executive producer: Molly Guinness
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