Burnham brings in top economists before possible leadership run

Andy Burnham on the last day of the Makerfield byelection campaign. Photograph: Adam Vaughan/EPA View image in fullscreen Andy Burnham on the last day of the Makerfield byelection campaign. Photograph: Adam Vaughan/EPA Burnham brings in top economists before possible leadership run Labour mayor giving advisory roles to ex-Bank of England economist and others seen as attempt to reassure markets Makerfield byelection – latest updates Three economic heavyweights have been brought in to advise Andy Burnham as he attempts to reassure the markets before his return to parliament and possible challenge to Keir Starmer. Burnham is understood to be getting advice from Andy Haldane, a former Bank of England chief economist, as well as Richard Hughes, a former chair of the Office for Budget Responsibility and Jim O’Neill, a crossbench peer and former Treasury minister who worked on George Osborne’s “Northern Powerhouse”. Burnham’s decision to bolster his team of economic advisers, first reported , suggests he is keen to signal his fiscal credibility. The extent of their involvement in drafting economic plans is not yet clear. The Greater Manchester mayor won the crucial Makerfield byelection by a huge majority on Friday, paving the way for a challenge to Starmer’s leadership. View image in fullscreen Andy Haldane on the 8 June edition of ITV’s Peston current affairs show. Photograph: Jonathan Hordle/ShutterstockNo 10 and the Treasury will be closely watching the bond markets on Friday morning for any sign that gilt investors are worried about higher borrowing or the economic instability brought about by a possible change in leader and chancellor. Burnham is expected to attempt to oust the prime minister within weeks, first . If Starmer declines to set a date for his departure then Burnham is likely to launch or join a contest, with his team confident of more than the necessary 81 MPs backing him. But allies of Starmer have warned the country and economy could be destabilised by a leadership contest. Aside from the effect of a leadership battle, some within Labour believe Burnham still has to make a case he can convince the markets to stay calm after he previously suggested the country should be less in hock to the reaction of bond traders. He has since smoothed over his remarks, saying they were misinterpreted. He told the FT: “What I’ve said is we had a way of running the economy over a long period of time where we just gave up control of the fundamental drivers of the economy.” He has also said he has no plans to change the fiscal rules that the chancellor, Rachel Reeves, committed to before the last election.