Andy Burnham, the Mayor of Greater Manchester, has called for increased regulation on artificial intelligence, Big Tech, and other critical industries, arguing that the lack of regulation contributed to the 2008 financial crisis. His comments come as he prepares to run in the Makerfield by-election on June 18, which could position him to challenge current Labour leader Keir Starmer.
Burnham's rise is seen as a threat to Starmer, whose leadership is under scrutiny following poor local election results. Prediction markets currently give Burnham a 56% chance of becoming Prime Minister by 2026, compared to a 26% chance for Starmer to remain in his role this year.
Investors have shown concern over Burnham's more left-leaning policies, particularly regarding public spending and borrowing, which could disrupt the current stability in U.K. government bonds, known as gilts. Burnham's op-ed was a response to Tony Blair's critique of Labour's focus on internal politics over economic growth.
He argues that neoliberal policies have failed to benefit the public and warns against the U.K. adopting divisive political practices similar to those in the U.S. He advocates for strong public control over investment strategies in sectors like transport, energy, and housing to foster economic growth in underperforming areas