Burnham Says His Economic Plan Would Keep UK Bond Investors Secure

Andy Burnham has said his vision for the UK economy would provide reassurance to bond investors, as debate grows within the Labour Party over the country’s economic direction. Speaking in London, the Greater Manchester mayor said markets should feel confident that his approach would deliver long term stability rather than increased risk. Burnham argued that years of deregulation, privatisation and austerity had weakened public finances and limited growth, leaving Britain trapped in a low growth cycle. He said restoring greater public control over key services could reduce long term costs for the state and improve economic efficiency. Burnham stressed that his proposals were not about ignoring financial markets but about creating a system that works better for both investors and the wider economy, particularly through more predictable and strategic public investment.

Burnham outlined what he described as a “Manchester” style approach to economic reform, drawing on the city’s experience with long term planning and collaboration between the public and private sectors. He said greater investment in housing, transport and utilities could cut wasteful spending and unlock stronger growth if combined with a clearer national strategy. Burnham pointed to welfare spending being absorbed by high private rents and rising utility bills as examples of inefficiency that could be addressed through reform. By redirecting resources into social housing and better managed infrastructure, he said the government could lower costs across the economy and improve productivity. Burnham added that this approach would offer investors more certainty over future policy, which he believes is essential for maintaining confidence in UK bonds.

The comments come as investors closely watch political developments ahead of local elections and amid questions over the future leadership of the Labour Party under Prime Minister Keir Starmer. Markets have so far taken comfort from the emphasis on fiscal discipline set out by Chancellor Rachel Reeves, while some analysts warn that a shift in leadership could bring looser budget policies. Burnham rejected the idea that his proposals would undermine market confidence, saying earlier remarks about moving beyond being overly constrained by bond markets had been misunderstood. He said he argued that short term decision making in Westminster was failing both investors and communities, and that a more stable, long term framework would benefit all sides.

Burnham also addressed global risks, including rising tensions between the United States and its allies, saying regions such as Greater Manchester should continue to pursue their own economic strategies. He said investment in green technology, skills and local industry would allow the UK to seize opportunities even if international conditions became more volatile. Burnham, who has previously served in national government and twice stood for the Labour leadership, said his focus remained on practical economic reform rather than internal party politics. He insisted that rebuilding growth and restoring confidence in public finances should be the priority, adding that this could be achieved without putting bond investors at risk.