Branch2 Intelligence
‘New direction, same old problems’: the economic challenges facing Andy Burnham | Richard Partington
Key takeaway
Andy Burnham faces stagflationary headwinds similar to the 1970s energy crisis as he prepares to become PM.
- Step 11st-order: Andy Burnham becomes PM, signalling potential fiscal expansion and energy market intervention.
- Step 22nd-order: UK gilt yields rise as markets price in higher borrowing and inflation risk, increasing SME financing costs.
- Step 33rd-order: Energy-intensive SMEs face higher input costs if windfall taxes or price caps are imposed, squeezing margins.
Source: Guardian Business
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