Burnham’s ambitions could be curbed by financial realitypublished at 19:38 BST
19:38 BST
Dharshini David
Deputy economics editor
For all the drama at Downing Street today, financial markets have been calm.
You might wonder if investors had headed to the beach for the day, but no –
they are watching to see not just who is going to reside behind that door at No 10, but also who will be behind No 11 as chancellor.
This isn’t a popularity contest, but one of policy and priorities – how they will tackle issues such as growth, jobs, and rising welfare spending.
Andy Burnham wants measures such as more control of utilities, while boosting social housing and the defence budget – a bigger role for the state, but a more costly one.
He’s constrained by the public finances. Public debt is heading up to £3 trillion and he wants to keep the rules designed to curb that.
So will his ambitions be curbed by financial reality – or will money be raised elsewhere through more tax rises?
Burnham might have once said he wouldn’t be in hock to the bond markets, the government’s lenders, but the next chancellor will have to keep them on side.
There may be several people vying to take control of the Treasury – but in some ways, it’s an unenviable task.