{"text":[[{"start":7.45,"text":"Eschewing his trademark T-shirt and blazer in favour of a prime ministerial dark suit, Andy Burnham pledged on Monday to shortly set out a 10-year plan to deliver a “new economic model” for Britain. The former Greater Manchester mayor is big on vision and bold promises, unlike the leader he has replaced, Sir Keir Starmer. With only three years of Labour’s parliamentary term left, though, what he says and does in the near term will determine whether his administration lasts long enough to see through his plans. He must avoid the mistakes that bedevilled the Starmer government almost from its outset. But many of his initial signals have not been encouraging."}],[{"start":45.75,"text":"The new prime minister pledged to unveil some support for the cost of living from Tuesday, and is said to have been considering options including rent freezes, along with cutting bus fares and energy bills. While such measures might cheer some voters, more intervention in private markets will do little to revive business confidence, and additional spending will put further strain on the UK’s already stretched public finances."}],[{"start":72.65,"text":"It is also concerning that Burnham has left the door open to raising the top rate of income tax from 45p to 50p at what is set to be a pivotal Budget in the autumn. He has indicated he is prepared to “ask for a little more” tax from higher earners to fund rising demands on spending. Yet raising the top rate would only hamper some of the UK’s most productive workers further after years of freezes to income tax thresholds, without raising significant additional revenues."}],[{"start":101.7,"text":"Instead, Burnham and his surprise appointment as chancellor, the former defence secretary John Healey, ought to put reviving hiring, investment, and business growth at the centre of plans for their first 100 days. That means, firstly, that they should avoid allowing rumours to spread around tax rises ahead of the Budget. Speculation ahead of Labour’s previous two fiscal events took a heavy toll on business confidence. "}],[{"start":126.5,"text":"One way to avoid such speculation would be to set out a credible plan for reducing public spending, particularly the spiralling expenditure on disability benefits. This would help to contain upward pressure on UK borrowing costs. Unfortunately, the incoming prime minister has already lost the chance to make significant savings by committing to maintain the costly “triple lock” on pensions, which guarantees that the state pension rises with the highest of inflation, wage increases or 2.5 per cent. Burnham’s comment on Monday that he was prepared to use “flexibility” within the existing fiscal rules nudged gilt yields higher."}],[{"start":165.1,"text":"When it comes to the Budget itself, Burnham’s Labour should not repeat the error of Starmer and his chancellor Rachel Reeves by treating business as a bottomless resource for tax revenues. It should avoid heaping yet more costs on to companies and investors, for example by imposing mooted increases in capital gains tax."}],[{"start":184.54999999999998,"text":"Above all, the incoming government needs to develop a plan for growth that revives animal spirits in the private sector, rather than Burnham’s push for a more interventionist state that harks back to the pre-1980s era. This means building on existing efforts to streamline planning rules, simplifying the tax system, and reducing red tape. The incoming prime minister’s pledge to deliver “growth in all postcodes” should not distract from efforts to realise the full potential of other key growth sectors such as the City of London, technology and life sciences."}],[{"start":219.45,"text":"Britain’s new leader has described his philosophy as “business-friendly socialism”. If he wants to take the country forward, he needs to lean more on the business-friendly elements than on the statist sentiments he has emphasised around his arrival in Downing Street."}],[{"start":240.74999999999997,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1784608107_5657.mp3"}