# Burnham's budget crisis: markets demand spending cuts

> Former Bank of England economist Andy Haldane warns the PM that bond market chaos requires hard choices on public spending, not just better social media.
- Title: Burnham's budget crisis: markets demand spending cuts
- Summary: Former Bank of England economist Andy Haldane warns the PM that bond market chaos requires hard choices on public spending, not just better social media…
- Keywords: andy haldane, andy burnham, uk budget, bond markets, borrowing costs, public spending, john healey, bank of england, fiscal policy, october 28 budget, news, entertainment
- Source: Dailymail — https://dailymail.com/money/markets/article-16134131/A-tax-spend-socialist-government-better-TikTok-videos-economist-savages-Andy-Burnham-calls-spending-cuts-calm-bond-market-chaos.html?ito=1490&ns_campaign=1490&ns_mchannel=rss
- Published: 2026-09-16T11:45:43+00:00
- Read time: 2 min
- Topics: andy haldane, andy burnham, uk budget, bond markets, borrowing costs, public spending, john healey, bank of england, fiscal policy, october 28 budget, news, entertainment
## Haldane attacks Burnham's approach
Former Bank of England chief economist Andy Haldane told LBC that Burnham is running 'a traditional tax and spend socialist government with better TikTok videos'.

> 'a traditional tax and spend socialist government with better TikTok videos'
## UK borrowing costs hit G7 high
The UK now pays more to borrow than any other major developed nation in the G7, with 30-year bond yields at a 28-year high.
## Bond market investors losing confidence
Markets have shifted from cautious optimism in summer to studied scepticism in September, suspecting the government won't make tough spending cuts.
## Budget headroom wiped out
Rising bond yields have eliminated much of the government's fiscal headroom ahead of the October 28 Budget, forcing difficult choices.
## Tax hikes or spending cuts looming
Experts fear the government will choose more tax hikes and borrowing rather than spending restraint to balance the Budget.
## Haldane's spending cut targets
Haldane suggests cuts could come from welfare, the triple lock on pensions, the NHS, or productivity improvements across the public sector.
## Cuts would lower borrowing costs
Haldane argues that spending cuts would buy credibility with markets, lower borrowing costs, and potentially pay for themselves through economic growth.

> 'Each of those individually would buy you, one, a lot of money, and two even more in instant credibility.'
## Political cost of spending cuts
Haldane concedes that spending cuts would face fierce opposition from Labour MPs, but only politically costly actions convince markets the government is serious.

> 'Ultimately, it's only by taking actions that come with a political cost, that you convince financial markets that you are serious.'
## Burnham's TikTok Prime Minister image
Burnham has nearly three million followers across social media platforms and is dubbed the first TikTok PM for his casual approach compared to Keir Starmer.
## Low drama Budget plan derailed
Haldane says the government's plan for a low drama Budget has been torpedoed by recent events, forcing hard choices on October 28.

> 'I think that's been torpedoed by events over the past couple of weeks'
## Key takeaway

Bond market investors will keep pushing up UK borrowing costs unless the government cuts spending rather than raising taxes.