Thursday 09 July 2026 11:58 am  |  Updated:  Thursday 09 July 2026 11:59 am

Burnham’s cheerfulness could turn the economy around

By: Paul Ormerod

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Confidence is an elusive but essential determinant of the course of the economy ignored by the doomsterism of Rachel Reeves. Andy Burnham could change that, writes Paul Ormerod

The UK economy has the potential to resume, for the first time this decade, a decent rate of growth.  

This is not some nostalgic tribute to the policies of Rachel Reeves. Indeed, her whole approach as Chancellor has hindered rather than helped growth.

The key point is that the financial balance sheet of the private sector is in much better shape than it has been for 25 years. Both companies and households have been repaying debt. So they are in a position, if they had sufficient confidence about the future, to spend.

Private sector debt was an important driver of the economy when Gordon Brown was Chancellor. In 1997, when Brown came to power, it was around 110 per cent of GDP. This soared to 180 per cent by the time of........

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