Burnham adviser calls for billions of pounds in borrowing for infrastructure

The man tapped by Andy Burnham to be his chief economic adviser has called for billions of pounds more borrowing to pay for investment in infrastructure, in a sign of how Burnham may seek to break from the policies pursued by Keir Starmer. Jim O’Neill, an economist and former minister, said he wanted the government to create an independent body for infrastructure spending along the lines of the Office for Budget Responsibility (OBR), which could be freed up to spend significantly more on major projects. The extra borrowing could add to jitters in the bond markets about the prospect of a Burnham government, though O’Neill argued it would still meet the government’s fiscal rules and provide sufficient transparency to reassure investors. He said: “There is a lot more room under the existing fiscal rules to borrow for investment, and the next chancellor should take advantage of that. We can do way more to boost infrastructure projects, and that is what we should be doing.” Jim O’Neill could become chief economic adviser in Andy Burnham’s new government. Photograph: Andy Hall/The Observer With Burnham almost certain to succeed Starmer as prime minister, attention is turning to his likely policies, especially on the economy, where he is seen as more leftwing than the present government. The Makerfield MP will give a speech next week fleshing out more of his probable programme, including significant measures on devolution. …