Andy Burnham is signalling a softer fiscal stance ahead of his October budget, a move that could calm markets watched by Canadian investors and affect trade ties across the Atlantic.
In an interview with the Financial Times, the new prime minister said he wants to "make life easier" for households and businesses, stressing the need to reduce both living costs and the "cost of business".
Burnham told the paper the budget date of 28 October was the earliest realistic option and insisted he was not planning a "punishing tax raid" on the private sector.
Research from the British Chambers of Commerce suggests that government policies over the past decade have lifted business costs by roughly 70 per cent, fueling the sector's anxiety about further tax increases.
The leader also hinted at a November trade summit with the European Union, echoing his predecessor's view that deeper EU trade could add percentage points to UK growth.
While Labour's 2024 manifesto ruled out re‑joining the EU customs union or single market, Burnham warned that ignoring the bloc would be imprudent for the economy.
He said the government's focus on public control of utilities such as water and energy was meant to create a "benign investment environment" without committing to full nationalisation.
City economists estimate the fiscal headroom at about £15 billion, but the left‑leaning think‑tank Resolution Foundation puts the figure closer to £8 billion, underscoring the limited space for new spending.
Rising energy costs have prompted North Sea operators to seek additional drilling permits, and Burnham backed comments from green‑energy entrepreneur Dale Vince that further oil and gas production could make sense if price controls are introduced.