Sunday Times: Business Fears “Raynernomics” Under Burnham
Business and the markets are “adopting the brace position” in case Angela Rayner’s economic programme — redistributionist, with higher taxes on the better-off and on businesses — becomes a reality under a Labour leader of the soft left. Economics Editor David Smith argues that, “in the absence of any detail from Andy Burnham, who, should he win the Makerfield by-election, will be a leadership candidate, possibly the favourite, it is reasonable to assume that his economics would be similar to Rayner’s”.
Rayner’s recent speech at the CWU conference in Bournemouth was aggressively redistributionist: she described “an economy that does not work for the majority, with wealth concentrated in too few hands” and attacked “decisions like cutting winter fuel allowance” from Chancellor Rachel Reeves. Unlike Reeves, Rayner has not ruled out a wealth tax; a leaked memo last year advocated higher taxes on dividends and banks and bringing more higher-paid people into the additional-rate 45% band. Markets read a Burnham-Rayner alignment as the worst-case combination for gilts — reflecting Friday’s sell-off in the bond and currency markets.