Prime Minister Andy Burnham used his first appearance in the House of Commons since taking office to tell MPs that the UK must be brutally honest about a series of wrong turns
taken over the last 40 years, placing blame on Brexit and the legacy of Margaret Thatcher, according to The Guardian.
Andy Burnham Blames Brexit and Thatcher Legacy for Decade of Low Growth in First Commons Speech
During a three-hour stint in the Commons, Burnham argued that the Brexit vote acted as a response to decades of systemic decline that were subsequently compounded by leaving the European Union. According to The Independent, he detailed a timeline of economic trouble starting from the 1980s: Political power was centralised, economic power privatised, the country de-industrialised. Austerity followed, hollowing out councils and depriving them of the agency to act to reverse any of this, and then Brexit compounding the damage, ushering in a decade of low growth and stalled regeneration.
Economists’ analysis of internal Bank of England data indicates that the UK economy has taken a 6% hit from the effects of Brexit since the referendum a decade ago, as reported by AOL.
Political Fallout and Opposition Reaction
Conservative leader Kemi Badenoch strongly criticized the Prime Minister’s remarks, accusing him of living in the past
and attempting to take the country back to the 1970s by attacking Margaret Thatcher—who was in power from 1979 to 1990—and four decades of neoliberalism. Badenoch told the Commons that Burnham was complaining about a woman who became prime minister before she was born.
The speech also followed a political shift in Parliament. Shortly before Burnham’s address, his predecessor, Sir Keir Starmer, announced he would stand down as an MP to focus on international affairs, setting up a byelection test in a seat where the Green Party anticipates strong competition. Burnham paid tribute to Starmer during his statement, acknowledging that his predecessor had created a platform for Britain to be fixed.
Key Policy Signals and Economic Pressures
Alongside his retrospective critique of UK economic policy, Burnham outlined several forward-looking goals and policy hints during his address:
- Hinted at a commitment to spend 3% of GDP on defence by 2030, noting he appointed John Healey as chancellor specifically for his stance on military spending.
- Signalled openness to renationalizing the water industry, describing the sector as leaking and stating he is reviewing all possible solutions.
- Suggested that the next UK-EU reset summit could take place in November.
- Confirmed his stance that a rerun of the Brexit referendum would be a mistake, though he has previously expressed a personal desire for the UK to rejoin the bloc in his lifetime.
Market reaction to the address included upward pressure on borrowing costs. According to LBC, government long-term borrowing costs rose amid a global bond sell-off, with the yield on 10-year gilts reaching 5.22% and the 30-year gilt hitting 5.85%, levels presenting a fiscal challenge ahead of the upcoming budget.
