What might markets look for in Burnham's choice of Chancellor?
By David Lawrence and Pedro Serôdio
A Chancellor under Andy Burnham would need to reassure gilt markets while funding an ambitious agenda. What bond investors watch for, and how the choice shapes borrowing costs.
Chancellors can make or break a government. Starmer and Reeves built their fiscal prudence around avoiding the bond market meltdown that ended Liz Truss and Kwasi Kwarteng in 2022. Any Chancellor Andy Burnham appoints would inherit the same constraint.
Keeping gilt yields low is what gives a government room to spend, whether on public ownership of utilities, infrastructure, or public services. This piece sets out what markets would read from Burnham's choice, and what a new Chancellor would need to signal to keep borrowing costs down.