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Conservatives have the right diagnosis, but can they cure Britain’s ailments?

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20.05.2026

Wednesday 20 May 2026 5:05 am  |  Updated:  Tuesday 19 May 2026 4:29 pm

Conservatives have the right diagnosis, but can they cure Britain’s ailments?

By: Alys Denby and Matthew Bowles

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LONDON, ENGLAND - APRIL 21: Shadow Chancellor of the Exchequer, Mel Stride MP, speaks on stage during the National Growth Debate at the Institute of Directors on April 21, 2026 in London, England. Chancellor Rachel Reeves and other senior political figures are participating in The National Growth Debate, hosted by the Good Growth Foundation, on how to stimulate economic growth in the UK. (Photo by Carl Court/Getty Images)

Mel Stride has set out his vision for the economic future of the UK, Matthew Bowles gives his analysis

Westminster has spent much of the past week discussing the emergence of a supposed “Burnham premium” on British borrowing costs – the suggestion being that the mere prospect of Andy Burnham returning to national politics could unsettle the increasingly sensitive gilt markets. The phrase itself would have felt faintly absurd a decade ago. Today, it draws little surprise. 

Fiscal credibility has increasingly come to dominate economic discussion, and rightly so. It was no different at Mel Stride’s keynote speech, hosted by the Centre for Policy Studies this morning. While the subject matter was broad, there was a repeated return to borrowing costs, fiscal rules and debt sustainability, without forgetting market confidence. Sensible economic debate in Britain now works on the assumption that governments possess far less room for manoeuvre than they once did. 

There are obvious reasons for this. Britain’s fiscal position remains weak by historical standards. Public sector net debt is about 100 per cent of GDP and the markets remain wary of the continued political instability seen over........

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