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Reeves warns Burnham to arrive with a worked-through governing plan
She highlights progress on borrowing costs and inflation, but says interest rates could rise again as inflation remains above target and disposable income falls.
UK Chancellor Rachel Reeves warned incoming Prime Minister Andy Burnham that he will need a worked-through plan when he enters Downing Street, saying governing is difficult in Britain and challenges and shocks are likely to follow, according to BBC Business.
Reeves said Burnham and his team should be clear on what they want to achieve and stay focused on the priorities that have driven him, in what the outlet described as her likely last major interview as chancellor.
In laying out the economic “big picture,” Reeves pointed to government borrowing costs falling, inflation having dropped from its peak, and increased investment in infrastructure such as roads and railways, while also noting the economy is growing faster than the UK’s nearest competitors.
The BBC also reports Reeves acknowledged remaining risks, including inflation still above target, slow growth, and a Bank of England warning this week that interest rates might have to go up again, alongside higher debt levels later in the current parliament and pressure on households and firms as ONS data showed disposable income falling.