UK economy in crisis as top expert issues urgent Burnham warning (Image: Getty)
A top financial expert has issued a stark warning after pointing to problems in the UK’s rising provate debt. Sir Howard Davies, the former chairman of NatWest, warned the UK faces “a very dicky period” leading up to the Budget amid a global bond sell-off.
He told BBC Radio 4’s Today programme that the sell-off did not represent “a major crisis of confidence in the UK Government”, pointing to problems with rising private debt and America’s “ballooning deficit”. When asked whether concerns about Andy Burnham’s approach to public spending was causing “some market jitters”, he said: “Yes, I think it is. Unfortunately, we do have a circus built around out budgets, which actually does not happen in many other countries.
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“There is a whole industry of people… to create expectations and then dash those expectations, and I think we are going to face a very dicky period between now and the Budget.”
He added: “I think we’re going to see a very uncertain period for the next three or four weeks, and it would be helpful if the Government could make some signs about their overall approach to the fiscal balance, which I think could calm things down a bit.”
Sir Howard also called for the pension triple lock to be changed, saying the country “can’t afford it”, adding: “If a Government does not grasp that nettle at some point, then I think its credibility is going to be on the rack.”
It comes as the Prime Minister refused to rule out further tax rises in his October Budget.
The former mayor of Greater Manchester reaffirmed his pledges on two key policy issues, stressing that he remains committed to meeting defence spending goals while also scrapping the widely debated digital ID scheme.
His comments appeared aimed at reassuring supporters and addressing concerns over the party’s priorities ahead of future policy decisions.
However, his commitments come amid growing economic pressures.
Earlier on Wednesday, warnings emerged that the UK may struggle to sustain the pension triple lock, which guarantees annual increases in the state pension, as rising borrowing costs place additional strain on public finances.
UK economy in crisis as top expert issues urgent Burnham warning (Image: Getty)
A top financial expert has issued a stark warning after pointing to problems in the UK’s rising provate debt. Sir Howard Davies, the former chairman of NatWest, warned the UK faces “a very dicky period” leading up to the Budget amid a global bond sell-off.
He told BBC Radio 4’s Today programme that the sell-off did not represent “a major crisis of confidence in the UK Government”, pointing to problems with rising private debt and America’s “ballooning deficit”. When asked whether concerns about Andy Burnham’s approach to public spending was causing “some market jitters”, he said: “Yes, I think it is. Unfortunately, we do have a circus built around out budgets, which actually does not happen in many other countries.
Get personal finance news, money saving tips and advice plus selcted offers and competitions Invalid email
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy
“There is a whole industry of people… to create expectations and then dash those expectations, and I think we are going to face a very dicky period between now and the Budget.”
He added: “I think we’re going to see a very uncertain period for the next three or four weeks, and it would be helpful if the Government could make some signs about their overall approach to the fiscal balance, which I think could calm things down a bit.”
Sir Howard also called for the pension triple lock to be changed, saying the country “can’t afford it”, adding: “If a Government does not grasp that nettle at some point, then I think its credibility is going to be on the rack.”
It comes as the Prime Minister refused to rule out further tax rises in his October Budget.
The former mayor of Greater Manchester reaffirmed his pledges on two key policy issues, stressing that he remains committed to meeting defence spending goals while also scrapping the widely debated digital ID scheme.
His comments appeared aimed at reassuring supporters and addressing concerns over the party’s priorities ahead of future policy decisions.
However, his commitments come amid growing economic pressures.
Earlier on Wednesday, warnings emerged that the UK may struggle to sustain the pension triple lock, which guarantees annual increases in the state pension, as rising borrowing costs place additional strain on public finances.