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Burnham’s Fiscal ‘Flexibility’ Could Backfire, Officials Fear

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Burnham’s Fiscal ‘Flexibility’ Could Backfire, Officials Fear UK Treasury officials are concerned that the prime minister’s talk of using “flexibility” within the fiscal rules to ramp up investment could backfire by destabilizing financial markets, according to people familiar with the thinking. Andy Burnham said on July 20, the day he became Britain’s premier, that he would stick to his predecessor’s rules on the public finances but would “use obviously any flexibility within them.”

Burnham’s Fiscal ‘Flexibility’ Could Backfire, Officials Fear UK Treasury officials are concerned that the prime minister’s talk of using “flexibility” within the fiscal rules to ramp up investment could backfire by destabilizing financial markets, according to people familiar with the thinking. Andy Burnham said on July 20, the day he became Britain’s premier, that he would stick to his predecessor’s rules on the public finances but would “use obviously any flexibility within them.”
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Originally published by Bloomberg Markets Read original →