Burnham issued UK economy warning amid modest growth and weak confidence

• The incoming Prime Minister faces a challenging economic landscape with modest growth, weak confidence, and limited fiscal headroom.
• Economists warn against daring economic policies , stressing that mistakes could be costly and destabilise financial markets, referencing the impact of Liz Truss's mini-Budget.
• Key risks include maintaining market confidence, potential political instability, bond market reactions, and persistent inflation driven by geopolitical tensions and supply issues.
• Opportunities for long-term growth lie in structural reforms, such as a property tax reset, a Brexit reset, leveraging older workers, and implementing devolution strategies.
• The Prime Minister's immediate priority is to reassure markets of fiscal credibility, avoid rushed tax changes, and consider an early budget to stabilise the economic outlook.

IN FULL

Five questions facing Andy Burnham on the UK economy