Oil has fallen to $72 a barrel, reducing the estimated hit to the UK’s fiscal headroom from the Middle East conflict to £4.6bn, down from an earlier £10bn forecast. Keir Starmer’s defence investment plan leaves £4.7bn of unfunded spending over four years, adding to borrowing at elevated levels and a national debt at its highest since the 1960s. Burnham has committed to Labour’s current fiscal rules and his camp is debating the timing of a cost-of-living package, while polls suggest an “economic populist” approach would help Labour against Reform UK. That tight fiscal starting point stands against his 29 June pledge to give local authorities greater public control over energy, water, housing and transport.
Context
That tight fiscal starting point stands against his 29 June pledge to give local authorities greater public control over energy, water, housing and transport.
