The Harsh Economic Truth Andy Burnham Must Face for UK Growth

Jan de Vries · 2026-07-24

Politicians love making big promises. They talk about building a better future, creating jobs, and boosting the economy. But there's often a gap between what they say and what they can actually deliver. Harry Margulies makes a compelling case that Andy Burnham needs to learn one of the hardest lessons from Mark Carney: economic reality must come before political promises if the UK wants sustainable growth. ### The Carney lesson that matters Mark Carney, former Bank of England governor, spent years navigating choppy economic waters. He saw how political decisions can either lift an economy or drag it down. One of his biggest takeaways? You can't fake growth. Short-term fixes might look good in headlines, but they rarely create lasting prosperity. Burnham, the Mayor of Greater Manchester, has ambitious plans. He's pushed for more devolution, better transport, and housing. But Margulies argues that without a hard look at what's financially possible, those plans could backfire. It's like building a house on sand—looks impressive until the tide comes in. ### Why economic reality matters more than ever The UK economy is in a tricky spot. Inflation has cooled, but it's still above the Bank of England's 2% target. Interest rates sit at 5.25%, making borrowing expensive for both businesses and local governments. Growth is sluggish, with GDP barely inching forward. In this environment, promising big projects without a clear funding plan is risky. Taxpayers end up footing the bill, or projects get delayed and cost more. Burnham needs to show he understands the trade-offs. Every dollar (or pound) spent on one thing means less for something else. ### What Burnham could do differently Instead of grand gestures, Margulies suggests Burnham focus on practical steps that build real economic momentum: - **Prioritize infrastructure that pays for itself** – Invest in projects that generate revenue, like improved transit links that boost property values and tax income. - **Work with businesses, not against them** – Create an environment where companies want to expand, hire, and invest. That means cutting red tape and offering stable policies. - **Be honest about trade-offs** – Tell voters that growth takes time. No magic wands, just steady, boring work. - **Learn from Carney's focus on resilience** – Build an economy that can withstand shocks, whether from global markets or local disruptions. ### The bigger picture for UK growth Burnham isn't alone. Politicians across the UK face the same challenge: how to deliver on promises while dealing with limited budgets and a tough economy. The lesson from Carney is that sustainable growth isn't about flashy announcements. It's about getting the fundamentals right. That means controlling debt, investing wisely, and being transparent about what's achievable. It's less exciting than a big speech, but it's what actually works. ### A final thought Margulies' argument is a wake-up call. If Burnham wants to be remembered as a leader who truly transformed his region, he needs to embrace economic reality. Promises win votes. But results build trust. And in today's economy, trust is the most valuable currency. The path forward isn't easy. But by learning from Carney's hardest lesson, Burnham can avoid the pitfalls that have tripped up so many before him. It's about playing the long game—and that's a lesson every leader could use.