Wednesday, 29 July 2026

Burnham is making the problems worse by his adherence to self-imposed rules

 

One of Andy Burnham’s ‘qualifications’ for the job of PM was that he was used to running a major public sector operation in the form of the mayoralty of Greater Manchester. It’s certainly a big job, and he will certainly have learned a lot from doing it, even if the degree to which he was successful is always going to be arguable, depending on one’s political perspective. There is a difference of scale, of course; but even more important is the difference in the constraints acting upon the incumbent. Manchester (like the Senedd here in Wales) has its powers and budgets circumscribed elsewhere. Westminster sets both, and the mayor (or First Minister) has no choice but to follow the statutory requirements laid down for him or her.

When it comes to running the UK from Downing Street, however, the situation is completely different. The Westminster parliament insists that it has absolute power – delegated to it by God and the Monarch – to do whatever it wants. Financially, the only real constraint is the capacity of the economy – the available resources, in short. Any other constraint is self-imposed: the so-called ‘fiscal rules’ are the invention of the government of the day which can change them at any time it wants to (and history shows that governments tinker with the rules regularly). There was no such thing before Gordon Brown invented them in 1997, and they were invented largely to ensure that the incoming Labour government followed broadly the same policies as the outgoing Tory government, in the belief that that was what ‘the markets’ wanted.

To date, Burnham has given no indication that he understands the difference – that he has moved from a situation where he has to obey rules laid down by others to one where he can make the rules. And all the neoliberal foundations and lobbyists – to say nothing of the financial ‘experts’ in the mainstream media – are only too keen to ensure that he doesn’t realise the extent to which he is imposing unnecessary constraints upon himself. There was a report today, for example, claiming that the PM “will have to raise taxes or cut spending” to meet his pledges and that “There's clearly no scope for increasing borrowing”. What they like to call ‘borrowing’, some of us prefer to call ‘accepting deposits from people looking for a safe home for their money’ – and the only limit on that is whether people have money for which they are seeking a safe home. Given the lack of worthwhile investment opportunities (which is a much bigger problem in itself), there’s no sign of any lack of deposits; and the choice posited by the first quote is solely a result of the fiscal rules.

One of the big issues which Burnham has highlighted this week is the question of social care. It’s usually presented as a shortage of money, but even if money was unlimited, there would still be a lack of qualified and willing carers, and lack of capacity is a much more important constraint than lack of money. But that lack of capacity is another self-imposed constraint – this time it’s arbitrary rules over numbers of migrants.

One point of similarity between the governments in Wales and Scotland, the mayoralty in Manchester, and the UK government is that they are all facing major issues. But only one of them is compounding the problems by using its unique position to be able to set its own rules in a way that exacerbates rather than alleviates.

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