Lead

Jim O’Neill, the economist and former minister tapped by Andy Burnham to be his chief economic adviser, has called for billions of pounds more borrowing to pay for investment in infrastructure, a sign of how Burnham may seek to break from the economic approach of Keir Starmer’s government. O’Neill said he wanted the government to create an independent body for infrastructure spending similar to the Office for Budget Responsibility, which could be freed up to spend significantly more on major projects.

Coverage comparison

Reporting by The Guardian frames O’Neill’s proposal as a potential departure from the fiscal stance of the current government, with Burnham seen as more leftwing than Starmer on economic matters. According to the same reporting, Burnham is almost certain to succeed Starmer as prime minister if he wins the upcoming Makerfield byelection, with his team expecting him to move against the prime minister within weeks.

The Guardian also reports that Burnham has been consulting three high-profile economists — Andy Haldane, a former Bank of England chief economist, former OBR chair Richard Hughes, and O’Neill — as he prepares a possible return to parliament and a challenge to Starmer. The extent of their involvement in drafting economic plans is not yet clear.

Key claims

  • Jim O’Neill has called for billions of pounds more borrowing to fund infrastructure investment, arguing there is room within existing fiscal rules.
  • O’Neill proposed an independent body for infrastructure spending, modelled on the Office for Budget Responsibility.
  • Burnham is receiving advice from Andy Haldane, Richard Hughes and Jim O’Neill as he prepares for a possible return to parliament.
  • Burnham is expected to attempt to oust Keir Starmer as prime minister if he wins the Makerfield byelection.
  • Burnham has previously said the country should be less beholden to the reaction of bond traders.
  • Burnham has said he would stick to existing fiscal rules and Labour’s manifesto commitments not to raise income tax, VAT or national insurance.