{"text":[[{"start":5.9,"text":"The man set to become Britain’s next prime minister has a rare political asset: likeability. Andy Burnham was re-elected twice as mayor of the fast-growing Greater Manchester city region. This month he secured an easy by-election victory in the northern English working-class constituency of Makerfield, and now commands the support of vast swaths of the ruling Labour Party. But if Burnham is to begin lifting the country out of its lengthy economic stasis — and succeed where six leaders in 10 years before him have struggled — the most popular politician in the UK must be prepared to make unpopular choices."}],[{"start":44.35,"text":"For more than 15 years, Britain has endured weak productivity growth and stagnant living standards. Economic shocks — including Brexit, the Covid pandemic and successive surges in energy prices — have played a part. But so too has the failure of successive governments to confront the tough decisions needed to make the country more prosperous. Spending cuts have been shirked, and as a result workers, businesses and investors have been sapped by an ever-rising tax burden. Substantive pro-growth reforms, which often benefit one group at the expense of another, have also been ducked. If Britain is to break out of its economic malaise, Burnham will have to be different."}],[{"start":85.4,"text":"A major test for the incoming leader will be his government’s handling of fiscal policy. Public investment can help crowd in private sector spending and drive faster growth. There are also growing calls to raise defence expenditure. But the UK’s rising long-term debt trajectory is troubling. The high yields demanded by gilt investors reflect as much. Burnham’s cabinet will need to cut costs and avoid fiddling with the fiscal rules, before making substantial commitments. That means reining in welfare spending even if that upsets a portion of the electorate. The “triple lock” on state pensions — which guarantees that payments rise with the highest of inflation, wage growth or 2.5 per cent — is unsustainable."}],[{"start":128.55,"text":"There are, however, calls from the left to levy higher taxes on the rich in order to avoid painful cuts, as well as to fund an expensive drive to nationalise key utilities. But tax increases and the threat of even higher levies have been a drag on private-sector activity throughout the term of Sir Keir Starmer’s government. Burnham ought to nip rumours of wealth taxes in the bud. Appointing a chancellor who has credibility with business and investors will be crucial."}],[{"start":156.20000000000002,"text":"The broader growth agenda will also warrant tough pragmatism. Burnham wants to “reindustrialise” Britain. But the nation’s numerous recent industrial strategies have petered out, in part because of a scattergun drive to be world-leading across too many sectors. Boosting the AI sector ought to be a priority, though Burnham has expressed support for tighter tech regulation."}],[{"start":179.9,"text":"Burnham will also have to decide whether to approve further activities in the North Sea to support production and jobs in the oil and gas sector, at the risk of upsetting green activists. He will need to build on Labour’s existing planning reforms with further liberalisations to enable Britain to build infrastructure faster and more cheaply, even if it annoys Nimbys. Finally, Burnham’s team should not shy away from pro-growth tax reforms — such as removing cliff-edges in the income tax system or reforming property taxes — which can come with a political price."}],[{"start":211.25,"text":"There is a case for Burnham to frontload the more painful decisions, capitalising on his popularity. But he also needs to avoid the trap Starmer fell into of projecting excessive gloom and seeming to offer pain but no near-term gain. It will mean keeping the country hopeful about the future, while guiding it through necessary but unwelcome choices. Navigating this will not be easy, but it is the standard of leadership Britain now urgently requires."}],[{"start":243.85,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1782441516_5134.mp3"}