Some new faces, same old problems

Following on from the latest change of Prime Minister and announcements about his new Cabinet, what is going to change? Andy Burnham has a new ten-year plan, and is promising a fundamental revision of politics, but Britain’s deeper economic problems remain unresolved. The fact is, underneath the headlines, the country is still trying to live beyond its means, with high borrowing, weak growth and rising debt interest putting serious pressure on its public finances. Three key costs are holding the economy back: labour, capital and energy. Higher employment costs, high interest rates and expensive electricity all make it harder for British businesses to compete, and small political fixes will not be enough. If Burnham wants to make the radical turnaround he is promising, a more honest national debate about public finances, competitiveness and economic growth is needed. Without a serious, long-term economic strategy, the underlying problems will continue to build, whatever the political headlines of the day.