Newsquawk Logo

UK's Andy Burnham fully rules out changing Chancellor Reeves’ fiscal rules if he becomes PM

Burnham's clear commitment to maintaining existing fiscal rules is an effort to stabilize market sentiment following recent volatility.

Newsquawk StaffPublished On the live feed at — 1 more headline followed before this page went public
Newsquawk headlinesUTC

German armed forces to place order for 2,030 trucks from Rheinmetall (RHM GY) for over EUR 1bln

Newsquawk Daily US Earnings Estimates - 19th May 2026: HD, KEYS

UK's Andy Burnham fully rules out changing Chancellor Reeves’ fiscal rules if he becomes PM

US sells 3-month bills at a high rate of 3.600%, B/C 3.17x; Sells 6-month bills at a high rate of 3.615%, B/C 3.07x

European Closes: Euro Stoxx 50 +0.58% at 5,857, Dax 40 +1.24% at 24,248, FTSE 100 +1.26% at 10,324, CAC 40 +0.44% at 7,987, FTSE MIB -0.91% at 48,669, IBEX 35 +0.75% at 17,755, PSI +1.21% at 9,143, SMI +0.29% at 13,258, AEX +0.52% at 1,016

Open the platform and use it. The whole workspace is free to try, with no signup and no card. When you want the headlines arriving live instead of on a delay, Newsquawk Pro is £24.99 for 7 days.

Try the platform free
Free. No signup, no card.
  • At the weekend his team had left it open whether he might change them in future
  • But tonight his spokesperson tells Bloomberg he is explicitly ruling out any changes to the existing fiscal rules
  • AND crucially Burnham is now also ruling out exempting defence spending from the fiscal rules to spend more on the military
  • He had floated that idea in a Bloomberg interview a few weeks ago, but his spokesperson tonight says he won’t pursue it
  • This is a big attempt by Burnham’s campaign team to reassure markets that were spooked on Friday by his potential premiership
  • But it may risk disappointing some on the left who had hoped for a more radical fiscal policy. 
  • It may also mean tax rises are the likely main revenue raiser in the event that Burnham wants to increase spending
Context

By ruling out exemptions for defense spending, it signals a more cautious approach to fiscal policy, potentially dampening expectations for expansive spending. This could steer investor perspectives towards potential tax increases as a means of financing any public spending increases, impacting GBP and broader market sentiment accordingly.

External

Related headlines

The whole workspace, free to try.

Try it free
Newsquawk Logo

© 2026 Newsquawk. All rights reserved.