economy
Burnham adviser calls for billions of pounds in borrowing for infrastructure
Exclusive: Jim O’Neill, a former chief economist at Goldman Sachs, says government should spend more on big projects
TL;DR
- Jim O’Neill, potential chief economic adviser to Andy Burnham, proposes increased borrowing for infrastructure investment.
- He suggests an independent body, akin to the OBR, to manage infrastructure spending transparently.
- O'Neill believes this can be achieved within the government's current fiscal rules.
- This approach may indicate a more left-leaning economic policy for Burnham compared to Keir Starmer.
- Burnham is also consulting other economists like Andy Haldane and Richard Hughes.
- Potential chancellors being considered include Ed Miliband and Wes Streeting.
- O'Neill previously chaired the Northern Powerhouse Partnership and supports Northern Powerhouse rail proposals.
- Increased borrowing could be balanced by assets purchased, according to Rachel Reeves' fiscal rule changes.
- An independent body would enhance transparency and reassure financial markets about the growth benefits of projects.