Commentator Alex Brummer has expressed skepticism regarding Andy Burnham's economic proposals, particularly his plans to address the UK's housing shortage. Brummer suggests that increasing taxes on homeowners, especially in the South East, would not be an effective strategy for boosting housebuilding.
Burnham's agenda includes what is described as the "biggest council house-building programme since the post-war period." However, Brummer points to the failure of previous pledges, such as Labour's commitment to 1.5 million new homes within the current Parliament, with only an estimated 300,000 certified in two years. He attributes this shortfall to capacity issues, planning delays, and a reduction in support for first-time buyers, suggesting that lowering stamp duty might be more beneficial than increasing property taxes.
The article also touches upon concerns about the increasing number of British businesses falling under foreign and private equity ownership, citing examples like easyJet, Segro, and Unilever's food arm. Brummer argues that such acquisitions lead to decision-making and tax revenues moving abroad, diminishing local and community control.
Economically, Brummer highlights warnings from the Bank for International Settlements (BIS) regarding the growing national debt and the role of highly leveraged hedge funds in sovereign bond markets. The BIS also cautions against unsustainable borrowing for capital expenditure, particularly in areas like artificial intelligence, referencing SpaceX's recent substantial debt issuance. Brummer suggests that Britain is particularly exposed to hedge fund speculation among G7 nations and that increasing national debt further would be imprudent.
Furthermore, the article notes Burnham's desire for state control over utilities, using Thames Water as an example. Brummer contends that placing such utilities into special administration could burden the government's balance sheet with additional debt.
Additionally, the piece briefly mentions the challenges faced by BT's international operations and the trend of UK corporations divesting global assets. It also notes the lack of acknowledgement regarding the increased costs associated with net-zero energy policies and the impact of rising employer national insurance contributions and minimum wages on sectors like hospitality.